ladbrokes-owner-sees-profits-boost-despite-gambling-crackdown

Ladbrokes owner sees revenues boost despite gambling crackdown

9 October 2019

GVC, the yohaig code business that owns Ladbrokes, says it anticipates its profits to be larger than expected despite the federal government's clampdown on gambling.
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The company still anticipates to close 900 shops over two years due to the fact that of the yohaig code maximum stake on fixed-odds wagering terminals (FOBTs) being cut to ₤ 2.
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But while using FOBTs has actually fallen, in the third quarter more bets were being put in-store.

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

In a third quarter trading update, it upgraded its earnings guidance for the full year to in between ₤ 670-₤ 680m, from ₤ 650-₤ 670m.
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Kenneth Alexander, GVC's primary executive, said: "I am pleased that the group's financial efficiency has actually permitted us to upgrade our full-year earnings before interest and tax expectations once again.
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"Online momentum remains strong throughout all significant territories, with net video gaming profits up 12% in the quarter regardless of the containing part of the World Cup."
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In August, the company revealed strategies to shut 900 stores - putting up to 5,000 tasks at risk - because of the cut in FOBTs optimal stakes from ₤ 100.
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There were 3,500 Ladbrokes and Coral shops at the start of the year, and some 198 have already shut, with the rest set up for closure by April 2021.

Rival William Hill has said it will close 700 shops as an outcome of the regulative clampdown. While GVC said income in the shops is down 18%, it still ahead of expectations.
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GVC suggested that clients were finding other ways to gamble, as while earnings from makers - consisting of FOBTs - were down 36% in the quarter, there was 7% increase in betting in stores.

But the biggest growth was in online gambling, improved by a 16% rise in online sport betting revenues. GVC shares were up nearly 4% in early trading.