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

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Ladbrokes owner sees revenues boost in spite of gambling crackdown
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9 October 2019
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GVC, the business that owns Ladbrokes, says it anticipates its earnings to be bigger than anticipated regardless of the yohaig code government's clampdown on gaming.

The company still anticipates to close 900 shops over 2 years because of the maximum stake on fixed-odds wagering terminals (FOBTs) being cut to ₤ 2.

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

The group, which likewise owns Coral, said online betting is likewise up by 12%.
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In a 3rd quarter trading upgrade, it upgraded its profits guidance for the complete year to between ₤ 670-₤ 680m, from ₤ 650-₤ 670m.

Kenneth Alexander, GVC's chief executive, said: "I am happy that the group's monetary efficiency has allowed us to upgrade our full-year earnings before interest and tax expectations again.
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"Online momentum remains strong across all significant areas, with net gaming profits up 12% in the quarter despite the prior period part of the World Cup."
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In August, the company revealed strategies to shut 900 shops - putting up to 5,000 tasks at risk - because 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 already shut, with the remainder arranged for closure by April 2021.

Rival William Hill has said it will close 700 shops as a result of the regulatory clampdown. While GVC said profits in the shops is down 18%, it still ahead of expectations.
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GVC showed that clients were finding other ways to gamble, as while earnings from machines - consisting of FOBTs - were down 36% in the quarter, there was 7% increase in wagering in shops.

But the biggest development remained in online gambling, improved by a 16% increase in online sport betting incomes. GVC shares were up nearly 4% in early trading.
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