Ladbrokes owner sees profits increase in spite of gambling crackdown

9 October 2019
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GVC, the company that owns Ladbrokes, states it expects its earnings to be larger than anticipated despite the yohaig code federal government's clampdown on betting.
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The company still expects to close 900 stores over 2 years since of the maximum stake on fixed-odds betting terminals (FOBTs) being cut to ₤ 2.

But while making use of FOBTs has fallen, in the third quarter more bets were being put in-store.
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The group, which also owns Coral, said online betting is also up by 12%.
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In a 3rd quarter trading upgrade, it updated its profits assistance for the yohaig code full year to between ₤ 670-₤ 680m, from ₤ 650-₤ 670m.
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Kenneth Alexander, GVC's primary executive, stated: "I am thrilled that the group's monetary efficiency has actually enabled us to update our full-year profits before interest and tax expectations once again.

"Online momentum stays strong across all major areas, with net up 12% in the quarter despite the prior period consisting of part of the World Cup."
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In August, the business revealed strategies to shut 900 shops - putting up to 5,000 jobs at risk - since of the cut in FOBTs maximum stakes from ₤ 100.

There were 3,500 Ladbrokes and Coral stores at the start of the year, and some 198 have already shut, with the remainder arranged for closure by April 2021.
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Rival William Hill has stated it will close 700 stores as an outcome of the regulative clampdown. While GVC stated profits in the stores is down 18%, it still ahead of expectations.

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

But the most significant growth was in online gambling, increased by a 16% rise in online sport wagering earnings. GVC shares were up nearly 4% in early trading.
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