Ladbrokes owner GVC upgrades earnings forecast
GVC, the owner of Ladbrokes Coral, upgraded its full-year earnings guidance as the gambling giant reported an increase in over-the-counter trading following a government crack down on betting machines.
The company increased its full-year guidance range to between £670m and £680m, from a previous estimate of £650m to £670m.
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Retail revenue fell 18 per cent in the third quarter, which was ahead of initial guidance, following the cut in fixed odds betting machines maximum stakes to £2. The introduction of the new rules saw net machine revenue fall 36 per cent.
However, over-the-counter betting revenue was seven per cent ahead of 2018, as customers adapted to the new regulations.
Online net gaming revenue from 1 July to 30 September was also up 12 per cent compared to last year.
Chief executive Kenneth Alexander said: “I am delighted that the group’s financial performance has allowed us to upgrade our full-year Ebitda expectations again.
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“Online momentum remains strong across all major territories, with NGR up 12 per cent in the quarter despite the prior period containing part of the world cup.
“This performance continues to be driven by our industry-leading technology, products, brands, marketing capability, and people.”
Main image credit: Getty