Ladbrokes owner sees revenues improve regardless of betting crackdown

9 October 2019

GVC, the company that owns Ladbrokes, states it expects its revenues to be bigger than expected despite the government's clampdown on gaming.

The firm still anticipates to close 900 stores over 2 years since of the optimum stake on fixed-odds wagering terminals (FOBTs) being cut to ₤ 2.

But while using FOBTs has actually fallen, in the 3rd quarter more bets were being positioned in-store.

The group, which likewise owns Coral, stated online wagering is also up by 12%.

In a 3rd quarter trading update, it upgraded its revenues assistance for the full year to in between ₤ 670-₤ 680m, from ₤ 650-₤ 670m.

Kenneth Alexander, GVC's chief executive, said: "I am pleased that the group's monetary performance has actually allowed us to update our full-year profits before interest and tax expectations once again.

"Online momentum stays strong across all significant territories, with net gaming revenue up 12% in the quarter regardless of the prior period containing part of the World Cup."

In August, the business revealed plans to shut 900 stores - putting up to 5,000 jobs at threat - because of the cut in FOBTs optimal stakes from ₤ 100.

There were 3,500 Ladbrokes and Coral stores at the start of the year, and some 198 have currently shut, with the remainder set up for closure by April 2021.

Rival William Hill has stated it will close 700 shops as an outcome of the regulatory clampdown. While GVC stated earnings in the shops is down 18%, it still ahead of expectations.

GVC suggested that clients were finding other methods to gamble, as while profits from machines - including FOBTs - were down 36% in the yohaig code quarter, there was 7% increase in wagering in stores.

But the greatest growth was in online gambling, boosted by a 16% rise in online sport betting profits. GVC shares were up nearly 4% in early trading.