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Ladbrokes Owner Sees Profits Boost Despite Gambling Crackdown

Ladbrokes owner sees revenues improve despite gambling crackdown

9 October 2019

GVC, the company that owns Ladbrokes, says it expects its revenues to be larger than expected despite the government’s clampdown on betting.

The company still expects 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 the use of FOBTs has fallen, in the 3rd quarter more bets were being put in-store.

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

In a third quarter trading upgrade, it upgraded its profits assistance for the full year to between ₤ 670-₤ 680m, from ₤ 650-₤ 670m.

Kenneth Alexander, GVC’s primary executive, said: “I am pleased that the group’s monetary efficiency has actually permitted us to upgrade our full-year revenues before interest and tax expectations once again.

“Online momentum remains strong throughout all major territories, with net income up 12% in the quarter despite the prior period including part of the World Cup.”

In August, the company revealed plans to shut 900 stores – putting up to 5,000 jobs at threat – due to the fact that of the cut in FOBTs optimal stakes from ₤ 100.

There were 3,500 Ladbrokes and Coral stores at the start of the year, and some 198 have actually currently shut, with the remainder scheduled 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 profits in the shops is down 18%, it still ahead of expectations.

GVC showed that customers were finding other ways to gamble, as while incomes from machines – including FOBTs – were down 36% in the quarter, there was 7% increase in betting in stores.

But the greatest growth was in online betting, increased by a 16% rise in online sport betting profits. GVC shares were up nearly 4% in early trading.