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Online growth offsets betting machine sales slump for Ladbrokes owner GVC - CityAM
17th January, 08:02Ladbrokes owner GVC Holdings this morning said full-year profit will be at the top end of guidance following strong growth in its online business.
The betting firm said full-year earnings before tax, interest, depreciation and amortisation is expected to be at the top end of upgraded guidance of £670m to £680m.
Read More: Ladbrokes owner GVC upgrades earnings forecast
Online net gaming revenue for 2019 is expected to be up 13 per cent, with growth of 11 per cent in the fourth quarter.
However, like-for-like UK retail revenue will be down 12 per cent after the maximum stake for fixed-odds betting terminals was cut from £100 to £2 in 2018.
European retail revenue grew four per cent in the year and total group revenue was up two per cent.
In the US, the company said it made good progress with its joint venture with MGM, signing an exclusive multi-year deal with Yahoo Sports in the fourth quarter.
GVC chief executive Kenneth Alexander said: "The group's operational and financial performance in 2019 has been excellent with the strong momentum reported at the third quarter continuing throughout quarter four.
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"The performance continues to be driven by our industry-leading technology, products, brands, marketing capability, people and local execution, all of which is underpinned by our determination to spearhead the industry's approach to responsible gaming.
"As the group continues to deliver the opportunities provided by both the Ladbrokes Coral integration and our sports betting joint venture in the US, the board is confident that the group is well placed for a successful 2020."