Ladbrokes owner forecasts higher annual profit after online gaming boost

Ladbrokes and bwin owner, GVC Holdings, has raised its outlook for annual core earnings after posting a 12 per cent rise in third quarter revenue, helped by a surge in online gaming and as sports events such as the English Premier League resumed.
By Ros Snowdon
Published 8th Oct 2020, 08:20 BST
Updated 8th Oct 2020, 08:24 BST
Ladbrokes and bwin owner, GVC Holdings, has raised its outlook for annual core earningLadbrokes and bwin owner, GVC Holdings, has raised its outlook for annual core earning
Ladbrokes and bwin owner, GVC Holdings, has raised its outlook for annual core earning

The firm, which owns the Coral and Eurobet brands, said full-year earnings are now expected to be between £770m and £790m.

GVC had previously forecast annual earnings to be between £720m and £740m. Last week, it warned that new gambling rules in Germany, its second largest online gaming market, would reduce 2021 profit by £70m.

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However, the company is steaming ahead as it also announced the acquisition of Bet.pt, an online gambling operator in Portugal. Gambling companies have been expanding overseas to offset a hit from tighter regulations in Britain.

The company, which has a US presence through a venture with casino operator MGM Resorts, said the business is tracking ahead of expectations.

Chief executive, Shay Segev, said: “We have delivered our nineteenth consecutive quarter of double-digit online growth, along with market share gains in all our major territories. GVC is primed for further growth.”

Online net gaming revenue for the three months to September 30 jumped 26 per cent as Covid-19 encouraged customers to play more to relieve themselves of boredom.

Related topics:GermanyPortugal