GVC Holdings Hits New Heights Online as Retail Revenue Slips

GVC Holdings’ finances are holding up despite retail revenue taking a 36 percent hit due to fixed odds betting terminal (FOBT) changes.

Coral betting shop

Retail revenue may have taken a knock but GVC Holdings continues to thrive online. (Image: Jeff J Mitchell/Getty Images)

In its Q3 trading report published on October 9, the parent company of Ladbrokes Coral said its current status was positive.

Leading the charge and helping boost overall earnings for the quarter was GVC’s online platforms.

Online Revenue Gaining Momentum for GVC Holdings

As per the report, net gaming revenue across the company’s online network was up 12 percent year-on-year.

That figure is made even more significant by the fact Q3 2018 featured the World Cup.

For GVC CEO Kenneth Alexander, that result is a testament to “industry-leading technology” and a diverse range of online products.

While online revenue remained strong, retail takings were a mixed bag. Although official commentary on the results said earnings “remain ahead of expectations,” FOBT cuts have taken their toll.

Comparing like-for-like, betting machine revenue was down by 36 percent. Additionally, 41 shops were shuttered during Q3, taking the total number of retail closures to 198.

Despite those negatives, over-the-counter revenue was up 7 percent. That increase helped prevent a complete crash, leaving leave GVC’s retail division with an 18 percent year-on-year dip.

Positives Ahead as US Opportunities Blossom

Looking forward, Alexander made reference to the ongoing partnership with MGM Resorts. With GVC powering the recently released BetMGM app in New Jersey, US sports betting opportunities are starting to bear fruit.

In tandem with its global expansion online, GVC has launched a new responsible gambling initiative. Dubbed the GVC Global Foundation, the organisation will support positive causes and help tackle problem gambling.

In context, the positives come at a critical time for GVC Holdings. Despite being one of the industry’s top operators, The Stars Group’s latest move has put everyone on alert.

By forging a deal with Flutter Entertainment, the two companies will now merge and become the largest gaming company in the world. With more resources and capital at its disposal, the new entity could easily engulf the industry.

However, with GVC holding a strong position in Europe and, increasingly, the US, the coming months could result in an interesting battle at the top.

Share Now: