Ladbrokes Owner Sees Profits Boost Despite Gambling Crackdown
Ladbrokes owner sees revenues boost in spite of gambling crackdown
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9 October 2019
GVC, the yohaig code company that owns Ladbrokes, says it expects its profits to be bigger than expected despite the government's clampdown on betting.
the yohaig code firm still anticipates to close 900 stores over two years because of the yohaig code optimum stake on fixed-odds wagering terminals (FOBTs) being cut to ₤ 2.
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But while making use of FOBTs has fallen, in the 3rd quarter more bets were being positioned in-store.
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the yohaig code group, which also owns Coral, said online wagering is likewise up by 12%.
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In a 3rd quarter trading upgrade, it updated its for the full year to in between ₤ 670-₤ 680m, from ₤ 650-₤ 670m.
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Kenneth Alexander, GVC's president, stated: "I am happy that the group's financial performance has actually permitted us to upgrade our full-year profits before interest and tax expectations again.
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"Online momentum remains strong throughout all major territories, with net video gaming revenue up 12% in the quarter regardless of the prior period including part of the World Cup."
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In August, the company revealed plans to shut 900 shops - putting up to 5,000 tasks at danger - because of the cut in FOBTs maximum stakes from ₤ 100.
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There were 3,500 Ladbrokes and Coral shops at the yohaig code start of the year, and some 198 have actually currently shut, with the rest arranged for closure by April 2021.
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Rival William Hill has stated it will close 700 stores as a result of the regulatory clampdown. While GVC stated income in the stores is down 18%, it still ahead of expectations.
GVC showed that consumers were discovering other ways to gamble, as while incomes from machines - including FOBTs - were down 36% in the quarter, there was 7% rise in betting in shops.
But the most significant growth was in online gaming, improved by a 16% increase in online sport betting revenues. GVC shares were up almost 4% in early trading.
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