I wrote about NetPlay TV plc (NPT) recently and in that post I mentioned that I had made money in the past on GVC, an on line betting stock. They have today announced interim results and a Q3 update which all reads very positively. In addition to this they have further increased their quarterly dividends such that they are up by 96% in calendar year 2014 over the previous year. They have also added a special dividend of 2.5c reflecting they say that:
"The Group remains highly confident for the outcome of this current financial year and this confidence is reflected in the enhanced dividend that we have announced today."
This takes dividend in the year to date up to 55c in total which compares to forecasts of 49c for the full year, so upgrades likely there. Overall a good set of numbers with better than expected dividends which this Company have been good at delivering in recent years. However, as a gambling related stock it tends to trade cheaply and is on around 9x with an 8% yield before any upgrades on the back of today's numbers. I wouldn't be arguing for a dramatic re-rating, but maybe it can progress in time if they continue to deliver as they have in the last couple of years.