GVC resumes dividend, adjusts full-year revenue forecast

GVC, the company behind the bwin.party and PartyPoker brands, has announced that it will pass on a dividend to shareholders despite previously ruling out a pay-out this year. The firm confirmed the news by announcing a 10c per share special dividend for the current year, despite having previously said it would take a ‘dividend holiday’ in 2016 under the terms of its Cerberus loan facility.

However, GVC said the loan would be repaid by the start of February next year and replaced with a cheaper Nomura debt. In addition to the dividend, which will be paid in February, GVC has announced a policy of distributing 50% of annualised free cash flow split 40% and 60% for the first and second half, respectively. Meanwhile, the company has published a trading update for the third quarter of the current year, during which net gaming revenue increased by 12% year-on-year and 15% at constant currency. As a result, GVC has increased its full-year revenue forecast to €885 million ($982.5 million), up from €860 million, although profit expectations remain unchanged. Related article: GVC brokers content deal with Scientific Games