Ladbrokes owner sees profits improve despite gambling crackdown

9 October 2019

GVC, the business that owns Ladbrokes, states it expects its earnings to be bigger than anticipated despite the federal government's clampdown on gambling.
bit.ly
The company still to close 900 stores over two years since of the maximum stake on fixed-odds wagering terminals (FOBTs) being cut to ₤ 2.

But while making use of FOBTs has actually fallen, in the 3rd quarter more bets were being placed in-store.
bit.ly
The group, which also owns Coral, said online betting is also up by 12%.
bet9ja.com
In a third quarter trading upgrade, it upgraded its earnings guidance for the complete year to between ₤ 670-₤ 680m, from ₤ 650-₤ 670m.
bit.ly
Kenneth Alexander, GVC's president, stated: "I am pleased that the group's monetary performance has actually permitted us to upgrade our full-year revenues before interest and tax expectations again.
bit.ly
"Online momentum stays strong throughout all major territories, with net gaming earnings up 12% in the quarter despite the prior period consisting of part of the World Cup."

In August, the company revealed strategies to shut 900 stores - putting up to 5,000 jobs at risk - since of the cut in FOBTs maximum stakes from ₤ 100.
bit.ly
There were 3,500 Ladbrokes and Coral shops at the start of the year, and some 198 have actually currently shut, with the remainder arranged for closure by April 2021.
bet9ja.com
Rival William Hill has stated it will close 700 stores as a result of the regulatory clampdown. While GVC stated earnings in the stores is down 18%, it still ahead of expectations.

GVC showed that customers were finding other ways to gamble, as while profits from makers - consisting of 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% rise in online sport wagering profits. GVC shares were up almost 4% in early trading.