DAVY VIEW

GVC’s 2019 results are in line with post-close guidance, albeit it reveals that H2 earnings momentum has been driven by UK Retail. Its start to 2020 has a familiar shape to it – group revenue growth is 5% year-to-date (ytd), with its Online division up a more eye-catching 16%. As we progress through another uncertain year for the sector, we will wait to revisit our underlying forecast assumptions. However, better-than-expected prospects in UK Retail will provide additional support to estimates. GVC’s ability to maintain earnings momentum and make progress in the US will drive its investment thesis in 2020 — both will become clearer as the year progresses.