The owner canceled races due to adverse weather has caused bookmakers GVCS to stumble in the beginning of this year, but maybe the online business more than parried the blow.
Boss Kenny Alexander said that in the first 20 weeks of the year, the group’s high street shops, which it acquired in a takeover from ladbrokes Coral caused 5pcs drop in net gaming revenue – the amount of money, the company’s sales reports as soon as the players’ winnings have been deducted.
Mr. Alexander said that more than one in 10 of all the scheduled horse racing fixtures cancelled in 2018 at ladbrokes bookmakers have suffered in particular. A strong run of wins at the bookmaker at the end of 2017 also cooled the enthusiasm of the customers to place multiple bets, fearing that they will lose again.
However, the online company had with the online net gaming revenue up 17pc thanks to a flurry of bets on sports. The revival in its gaming division of casino also helped with net gaming revenue in its partypoker website 41pc.
GVC boss Kenny Alexander believes that he can reduce costs at least £130m per year by 2021 for another ladbrokes, Coral is a fully integrated
Shares rose almost 2pc to £ 10.03 on the back of the figures, as investors were reassured Mr. Alexander, confirming the possible consequences of the Government’s decision to cut the maximum stakes on fixed odds betting terminals from £100 to £2.
The chief Executive expected that the profit before interest, tax, depreciation and amortization, suffer a £160m hit in the first year the reduction in the share but after that it will fall to £120m.
“We therefore expect to maintain a profitable and a very significant cash flows in the UK retail property,” Mr. Alexander said.
Shareholders were also pleased by the prediction of Mr. Alexander, he will be able to increase savings, third time at ladbrokes, Coral was fully integrated into GVCS.
He used to think I could save 100 million pounds in costs per year by 2021, but now, just two months after the deal is completed – said it would be “at least £130m”.
“It is very early days since the completion of the acquisition, the independence of the Coral, but from what I’ve seen so far I am delighted with the opportunity and even more confident of delivering shareholder value,” said Alexander.
From the point of view of the United States, where the major legal conclusion of the Supreme Court saw near nationwide ban on sports betting overturned, Mr. Alexander said that it “represents the potential for significant expansion” on the regulated sports betting market.
“Through the stadium, the group is already a leading provider of B2B technology activities in Nevada and new Jersey-technology GVCS supports MGM online casino and poker offers,” he said.