Ladbrokes owner sees profits increase despite gambling crackdown

9 October 2019

GVC, the company that owns Ladbrokes, says it expects its revenues to be larger than expected regardless of the government's clampdown on gambling.

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

But while making use of FOBTs has actually fallen, in the 3rd quarter more bets were being positioned in-store.

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

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

Kenneth Alexander, GVC's president, said: "I am pleased that the group's financial efficiency has actually allowed us to update our full-year incomes before interest and tax expectations once again.

"Online momentum remains strong throughout all major areas, with net video gaming profits up 12% in the quarter regardless of the prior duration including part of the World Cup."

In August, the company announced strategies to shut 900 stores - putting up to 5,000 tasks at threat - due to the fact that 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 actually currently 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 stated income in the stores is down 18%, it still ahead of expectations.

GVC showed that customers were discovering other ways to gamble, as while incomes from machines - including FOBTs - were down 36% in the quarter, there was 7% rise in wagering in shops.

But the greatest development was in online betting, improved by a 16% rise in online sport wagering profits. GVC shares were up almost 4% in early trading.