GVC online betting surge offsets retail business plunge

Ladbrokes Coral owner, GVC Holdings, has announced a 3% revenue growth in the second quarter of 2019 as online sales offset a collapse in UK high street revenue. 

Earlier this year, the government slashed FOBTs maximum stake from £100 to £2. Following the cut, GVC warned that 900 of its betting shops may close due to a huge 39% machine sales plunge. 

Other competitors, including William Hill, also announced plans to close hundreds of retail stores around the country, risking thousands of jobs. 

However, despite a 19% drop in retail sales, GVC has recouped its losses thanks to an 18% rise in online sales.

GVC Holdings CEO, Kenneth Alexander, said: “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.”