DAVY VIEW

Recent US developments (rapid market evolution, greater capital available to market leaders) have prompted a change in approach at ROAR Digital (GVC’s US joint venture (JV)). Increased investment is intended to drive accelerated market share gains as GVC looks to add momentum to its US aspirations. We agree the US is the greatest value creation opportunity for the sector at present, including GVC. Conceptually, an injection of additional funds should allow the group to compete more strongly with existing market leaders. However, with significant ground to be made up and the efficiency of its customer acquisition approach unproven, the ultimate success (and cost) of its US strategy remains difficult to assess.