Ladbrokes owner sees profits enhance in spite of gambling crackdown

9 October 2019

GVC, the yohaig code business that owns Ladbrokes, states it anticipates its revenues to be larger than expected regardless of the government's clampdown on gambling.

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

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

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

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

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

"Online momentum stays strong throughout all major territories, with net video gaming income up 12% in the yohaig code quarter in spite of the prior duration including part of the World Cup."

In August, the yohaig code business revealed plans to shut 900 stores - putting up to 5,000 jobs at danger - because of the 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 already shut, with the rest set up for closure by April 2021.

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

GVC indicated that consumers were discovering other methods to gamble, as while profits from devices - consisting of FOBTs - were down 36% in the quarter, there was 7% increase in betting in shops.

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