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Jan 11 2018, 08:45 GMT
GVC’s post-close trading update points to a very favourable run of sports results in Q4. The gross win margin was 13.1% versus a long-term expectation of 10%. This resulted in revenues that were €24m, or 9%, ahead of our Q4 expectation. Normalising the outcome for the margin boost, underlying demand looks broadly in line with gaming growth across the sports brands – +14% versus our expectation of +10%. All told, the statement implies that 2017 EBITDA came in at circa €276m versus our forecast of €266m. We do not expect a material change in our future year forecasts as the Q4 beat was mostly sports results-related.