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Ladbrokes Owner Sees Profits Boost Despite Gambling Crackdown

Ladbrokes owner sees revenues boost in spite of betting crackdown

9 October 2019

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

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

But while making use of FOBTs has fallen, in the 3rd 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 updated its earnings assistance for the complete year to between ₤ 670-₤ 680m, from ₤ 650-₤ 670m.

Kenneth Alexander, GVC’s president, said: “I am thrilled that the group’s financial performance has actually allowed us to upgrade our full-year earnings before interest and tax expectations once again.

“Online momentum stays strong across all significant areas, with net video gaming income up 12% in the quarter regardless of the prior period including part of the World Cup.”

In August, the company revealed strategies to shut 900 stores – putting up to 5,000 jobs at risk – due to the fact that 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 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 said income in the yohaig code shops is down 18%, it still ahead of expectations.

GVC showed that customers were finding other ways to gamble, as while profits from devices – including FOBTs – were down 36% in the quarter, there was 7% increase in wagering in shops.

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