Ladbrokes owner sees profits enhance regardless of betting crackdown

9 October 2019

GVC, the business that owns Ladbrokes, states it anticipates its profits to be larger than anticipated despite the government's clampdown on betting.

The company still expects to close 900 shops 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 third quarter more bets were being positioned in-store.

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

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

Kenneth Alexander, GVC's chief executive, stated: "I am happy that the group's financial performance has enabled us to upgrade our full-year incomes before interest and tax expectations once again.

"Online momentum stays strong across all major areas, with net gaming profits up 12% in the quarter in spite of 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 already shut, with the remainder set up for closure by April 2021.

Rival William Hill has said it will close 700 shops as an outcome of the regulatory clampdown. While GVC said profits in the shops is down 18%, it still ahead of expectations.

GVC suggested that customers were discovering other methods to bet, as while revenues from devices - consisting of FOBTs - were down 36% in the quarter, there was 7% rise in betting in stores.

But the most significant development was in online gambling, boosted by a 16% increase in online sport betting earnings. GVC shares were up almost 4% in early trading.