GVC Holding’s online verticals led the company to Q2 gains as the reduction in FOBT stake bit into its high street operations.
GVC Holdings, the company behind Ladbrokes Coral, saw impact from the FOBT stake reduction lessened by positive performances across its online verticals.
Revenues from Ladrbokes Coral retail venues were down 19 percent up to 30 June with machine take severely effected by the cut.
GVC has commented that this was above expectation however with customers reportedly pivoting to other in-house units well.
The operators online gambling operations were up 16 percent leading to an overall rise in revenues for the quarter of three percent and five percent for the first half of the year.
Kenneth Alexander, CEO GVC said:
“Trading in Q2 remained very strong with the Online division delivering continued material market share gains across all major territories. This outperformance is driven by the sustainable competitive advantages of our proprietary technology platform, leading product, cutting edge marketing and leading brands, all delivered with an unrivalled understanding of the markets in which we operate.
“The transition to a post £2 stakes-cut environment in UK Retail is progressing very well and we believe the Ladbrokes Coral estate is best-placed to take market share. In the US, Roar Digital, our JV with MGM Resorts, is on-track for its full online launch ahead of the NFL season in September. In the first half of the year the Group was granted licences in Mississippi and Nevada, and Roar Digital received a transactional waiver to conduct business in New Jersey.
“The Group expects an announcement in August from Hesse, the state leading the regulatory process for online sports-betting in Germany, detailing the requirements that will govern the new sports-betting licences. The strong trading performance of the Group means that any potential costs in 2019 associated with the new sports licences are expected to be fully mitigated. The Board therefore remains confident of delivering EBITDA and operating profit in-line with expectations for the full year.”