Ladbrokes owner sees revenues improve regardless of betting crackdown

9 October 2019

GVC, the company that owns Ladbrokes, says it expects its profits to be larger than anticipated in spite of the federal government's clampdown on gambling.

The firm still anticipates to close 900 shops over 2 years because of the maximum stake on fixed-odds betting terminals (FOBTs) being cut to ₤ 2.

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

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

In a third quarter trading update, it upgraded its earnings assistance for the complete year to in between ₤ 670-₤ 680m, from ₤ 650-₤ 670m.

Kenneth Alexander, GVC's president, stated: "I am happy that the group's monetary efficiency has actually enabled us to upgrade our full-year revenues before interest and tax expectations once again.

"Online momentum remains strong across all significant areas, with net video gaming earnings up 12% in the quarter despite the previous period containing part of the yohaig code World Cup."

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

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

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

GVC showed that consumers were discovering other methods to gamble, as while incomes from machines - including FOBTs - were down 36% in the quarter, there was 7% rise in betting in stores.

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