Ladbrokes owner sees revenues boost in spite of gambling crackdown

9 October 2019

GVC, the company that owns Ladbrokes, says it anticipates its profits to be bigger than expected regardless of the government's clampdown on gambling.

the yohaig code company still anticipates to close 900 shops over two years due to the fact that of the yohaig code maximum stake on fixed-odds betting terminals (FOBTs) being cut to ₤ 2.

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

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

In a 3rd quarter trading upgrade, it upgraded its profits guidance for the full year to between ₤ 670-₤ 680m, from ₤ 650-₤ 670m.

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

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

In August, the company announced strategies to shut 900 stores - putting up to 5,000 jobs at danger - due to the fact that of the cut in FOBTs optimal stakes from ₤ 100.

There were 3,500 Ladbrokes and Coral shops at the start of the year, and some 198 have actually already shut, with the rest arranged for closure by April 2021.

Rival William Hill has said it will close 700 stores as a result of the regulatory clampdown. While GVC said earnings in the shops is down 18%, it still ahead of expectations.

GVC suggested that customers were discovering other methods to gamble, as while profits from makers - consisting of FOBTs - were down 36% in the quarter, there was 7% rise in betting in shops.

But the greatest development remained in online gaming, increased by a 16% increase in online sport wagering earnings. GVC shares were up almost 4% in early trading.