Online boosts betting profits
GVC quids in despite new maximum bet
LADBROKES owner GVC will make more profit than expected this year, despite the Government’s crackdown on gambling.
Online growth means the firm’s earnings for 2019 will be higher than previously forecast. But it still expects to close 900 stores over the next two years.
The company said “strong online momentum” across all brands has helped to drive higher earnings.
Earnings before tax and interest are now expected to be between £670million and £680million – up from the previous 2019 forecast of £650 to £670million.
The gambling giant, which also owns Coral, said income has been boosted by stronger revenues on the UK high street. Over-the-counter wagers in UK betting shops jumped seven per cent in the past three months in the aftermath of legislation on fixed-odds betting terminals, which has chopped the maximum bet allowed on these machines from £100 to £2. Total net gaming revenue for the group is down one per cent in the third quarter to September 30, while net gaming revenue for the year so far is up three per cent. This growth has largely been driven by a surge in online revenues, up 12 per cent for the past three months, buoyed by a 16 per cent rise in online sport betting revenues. In July, the company announced plans to close 900 shops, putting up to 5000 jobs at risk. GVC chief executive Kenneth Alexander said: “I am delighted the group’s online momentum remains strong, with net gaming revenue up 12 per cent. This continues to be driven by industry-leading technology, products, brands, marketing capability and people.”