Ladbrokes owner sees revenues improve in spite of gambling crackdown

9 October 2019

GVC, the business that owns Ladbrokes, says it anticipates its profits to be larger than anticipated despite the federal government's clampdown on betting.

The company still expects to close 900 stores over two years due to the fact that of the maximum stake on fixed-odds wagering terminals (FOBTs) being cut to ₤ 2.

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

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

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

Kenneth Alexander, GVC's primary executive, said: "I am thrilled that the group's financial efficiency has actually allowed us to update our full-year revenues before interest and tax expectations once again.

"Online momentum stays strong throughout all major territories, with net gaming income up 12% in the quarter in spite of the previous period consisting of part of the World Cup."

In August, the company announced strategies to shut 900 stores - putting up to 5,000 tasks at danger - because of the cut in FOBTs maximum 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 rest scheduled for closure by April 2021.

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

GVC suggested that clients were discovering other ways to bet, as while revenues from devices - including FOBTs - were down 36% in the quarter, there was 7% increase in betting in stores.

But the biggest growth remained in online betting, boosted by a 16% rise in online sport betting revenues. GVC shares were up nearly 4% in early trading.