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Ladbrokes owner sees revenues increase despite betting crackdown

9 October 2019

GVC, the business that owns Ladbrokes, says it expects its profits to be bigger than anticipated despite the yohaig code federal government's clampdown on gambling.
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The company still expects to close 900 shops over two years due to the fact that of the optimum stake on fixed-odds betting terminals (FOBTs) being cut to ₤ 2.
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But while the usage of FOBTs has actually fallen, in the 3rd quarter more bets were being positioned in-store.
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The group, which also owns Coral, stated online betting is also up by 12%.
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In a 3rd quarter trading upgrade, it updated its earnings guidance for the full year to between ₤ 670-₤ 680m, from ₤ 650-₤ 670m.
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Kenneth Alexander, GVC's chief executive, said: "I am happy that the group's monetary efficiency has actually permitted us to update our full-year earnings before interest and tax expectations again.
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"Online momentum stays strong across all significant territories, with net up 12% in the quarter despite the prior period containing part of the World Cup."
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In August, the business announced strategies 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 start of the year, and some 198 have already shut, with the remainder scheduled for closure by April 2021.
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Rival William Hill has stated it will close 700 stores as an outcome of the regulatory clampdown. While GVC stated earnings in the stores is down 18%, it still ahead of expectations.

GVC indicated that clients were finding other ways to bet, as while earnings from devices - consisting of FOBTs - were down 36% in the quarter, there was 7% rise in betting in shops.

But the greatest development was in online betting, enhanced by a 16% increase in online sport wagering earnings. GVC shares were up nearly 4% in early trading.