GVC’s online sales increase despite retail slowdown

GVC Holdings, the owner of Ladbrokes, has posted impressive online sales figures in the third quarter of the year, thanks largely to England’s uncharacteristically long run in the football World Cup.

The company’s net gaming revenue increased by 14 per cent in the quarter, compared to the previous year.

Online net gaming revenue rose by 28 per cent year-on-year, fuelled by a 31 per cent increase in online sports betting. Ladbrokes.com revenues saw a 23 per cent spike, while Coral.co.uk’s revenues increased by 29 per cent.

However, brick and mortar sales saw a downturn. GVC’s UK retail sales dropped by 2 per cent year-on-year. European retail was, however, up 24 per cent year-on-year with growth in all regions. The company said it recorded considerable trading increases even discounting the impact of the World Cup, which finished in mid-July.

GVC also said the integration of Ladbrokes Coral, which it acquired earlier this year, was “progressing well.”

Discussing the performance, CEO Kenneth Alexander said: “The group’s performance in the quarter was very pleasing with momentum continuing across the Online and European Retail divisions.”

“As highlighted in our H1 results, we will look to consolidate our position in markets where we are taking market share through the reinvestment of excess returns, and the board is confident in its full year expectations.”

GVC added that the “imminent” launch of its New Jersey app on iOS will trigger a “full playMGM marketing campaign” in the state.

Alexander added: “We believe our sports-betting joint venture with MGM is best placed to be the market leader in the US and we have taken the first steps on that journey with the soft-launch of our sports-betting app in New Jersey.”

Source: iGaming Business