Bookie cashes in on online betting boom

PUNTERS placing bets on their mobiles during the World Cup helped boost business at Ladbrokes owner GVC.

The company said revenues rose 14pc in the third quarter as a 28pc surge in takings online more than made up for a 2pc slide on the high Street, where it owns around 3,500 Ladbrokes and Coral betting shops.

Online games revenues were up 19pc as punters also flocked to its Foxy Bingo, Party Poker and Gala Casino sites.

GVC shares yesterday rose 1.7pc, or 16p, to 945.5p.

The company, run by chief executive Kenny Alexander, completed its £3.2bn takeover of Ladbrokes Coral in March, bringing two of the most established names in British bookmaking under the same roof as a host of newer brands such as Foxy Bingo. The takeover marked GVC’s first foray into retail gambling, and bosses used yesterday’s trading update to say the integration of the Ladbrokes Coral business was progressing well.

Nicholas hyett, equity analyst at hargreaves Lansdown, said: ‘GVC continues to demonstrate why it’s our favourite bookie, churning out solid growth and impressive odds setting – with a helping hand from the World Cup.’

GVC is seeking to exploit the liberalisation of sports betting in the US and has already signed a deal with casino group MGM. Alexander said the joint venture, to create a sports betting and interactive gaming platform, is best placed to become a market leader.

GVC has been an early mover in the opening of the US market, which is poised to become a multi-billion-dollar industry. In July it confirmed a £153m tie-up with the owner of Las Vegas’s Bellagio and Mirage brands.

But like all bookies, it is grappling with tougher regulation in the UK, where there has been a clampdown on fixed odds betting terminals – the gambling machines that have been dubbed the ‘crack cocaine’ of the industry. Plans to cut the maximum stake allowed on these machines from £100 to £2 are expected to hit profits hard at Ladbrokes and Coral.

In sharp contrast to GVC’s performance on the UK high Street, sales at its european branches rose 24pc, driven by strong growth in Italy.

GVC said its chief financial officer Paul Bowtell will leave the betting group in March for a role at private equity firm Alchemy Partners. Bowtell was previously Ladbrokes Coral chief financial officer. Rob Wood, who is currently finance boss of the Ladbrokes Coral UK retail business – which is GVC’s largest unit – has been appointed as deputy finance chief and will take over from Bowtell when he departs.