Ladbrokes owner sees revenues increase regardless of betting crackdown

9 October 2019

GVC, the company that owns Ladbrokes, says it anticipates its revenues to be larger than expected in spite of the government's clampdown on betting.

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

But while the use of FOBTs has actually fallen, in the yohaig code third quarter more bets were being positioned in-store.

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

In a 3rd quarter trading upgrade, it updated its earnings guidance for the complete year to in between ₤ 670-₤ 680m, from ₤ 650-₤ 670m.

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

"Online momentum stays strong across all significant territories, with net video gaming income up 12% in the quarter in spite of the previous period including part of the World Cup."

In August, the yohaig code company announced strategies to shut 900 shops - putting up to 5,000 tasks at threat - since of the yohaig code 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 remainder arranged for closure by April 2021.

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

GVC showed that customers were finding other ways to bet, as while revenues from devices - including FOBTs - were down 36% in the quarter, there was 7% rise in wagering in shops.

But the most significant growth remained in online gaming, increased by a 16% rise in online sport betting incomes. GVC shares were up almost 4% in early trading.