Bwin’s year-on-year net revenue rose by 5% in the fourth quarter of 2015, compared with an 8% fall in the third quarter and a 6% drop in the first half.
The gain, which was driven by sports betting and casino, particularly across mobile channels, sends the shares up 1.1% to 130.4p.
Bwin says it has made significant progress in meeting its cost savings target of €15 million for 2015.
It also expects to benefit from a €10 million cash injection due to the sale of Visa Europe to Visa Inc (V:NYSE). Kalixa, Bwin’s payment services provider, is one of Visa Europe’s principal members.
The recommended offer from GVC is expected to complete on 1 February, subject to court approval in Gibraltar.
Panmure Gordon analyst Karl Burns reckons the acquisition will add significant shareholder value. He expects analysts to upgrade their forecasts for 2015 following Bwin’s trading update, with revenue growth likely to be slightly higher than Panmure’s €595 million forecast.
We analysed what impact the takeover of Bwin will have for GVC shareholders in the 29 October issue of Shares. You can read the article online here.