Ladbrokes Owner Sees Profits Boost Despite Gambling Crackdown

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Ladbrokes owner sees revenues increase in spite of gambling crackdown
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9 October 2019
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GVC, the yohaig code business that owns Ladbrokes, states it its profits to be larger than expected in spite of the federal government's clampdown on gaming.

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

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

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

In a 3rd quarter trading upgrade, it updated its revenues guidance for the complete year to between ₤ 670-₤ 680m, from ₤ 650-₤ 670m.
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Kenneth Alexander, GVC's president, stated: "I am pleased that the group's financial efficiency has allowed us to upgrade our full-year profits before interest and tax expectations once again.

"Online momentum remains strong across all major territories, with net gaming profits up 12% in the quarter despite the prior period consisting of part of the World Cup."
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In August, the business announced strategies to shut 900 stores - 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 currently shut, with the rest set up for closure by April 2021.

Rival William Hill has stated it will close 700 shops as a result of the yohaig code regulatory clampdown. While GVC said revenue in the shops is down 18%, it still ahead of expectations.
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GVC indicated that customers were discovering other methods to bet, as while earnings from machines - including FOBTs - were down 36% in the quarter, there was 7% rise in wagering in stores.

But the most significant development remained in online gambling, improved by a 16% rise in online sport betting revenues. GVC shares were up nearly 4% in early trading.
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