GVC Holdings, owner of Ladbrokes Coral, has published its financial results for 2019.
Over the whole year, the company enjoyed a significant increase in iGaming revenue.
For the 12 months ending on 31st December 2019, overall online revenue reached £2.12 billion. This was a 13.3% increase on 2018’s figures.
Of this, online sports betting revenue contributed £966.5 million to it. Compared to the previous year, that was a 15.7% jump.
However gaming was the biggest online money maker for GVC. Pro-forma revenue for this hit £1.19 billion, which was 12.6% higher than in 2018.
Softening the retail blow
Compared to GVC’s online results, retail didn’t fare so well. Part of this was attributed to the introduced £2 maximum stake limit on fixed odds betting terminals (FOBTs).
In the UK market, net retail revenue dropped by 15.1% and reached £1.13 billion. Meanwhile, machine revenue went down by 28% to £561.9 million.
GVC expects to close 450 shops as a result of the Triennial Review, though this is less than half of the original plan.
“Very strong growth”
Kenneth Alexander, CEO for GVC, shared his thoughts on the company’s financial results for last year. These were as follows.
“We have delivered very strong growth in our Online business, including market share gains in all major territories, and good momentum in our European retail business,” he said.
“This revenue growth has more than offset the impact on the UK Retail business of the £2 restriction on B2 machines stakes.
“We are delighted with the progress that is being made on the Ladbrokes Coral integration, and in the US. The launch of BetMGM on the GVC platform in New Jersey was an important milestone for our business there, and enables us to remain on-track to deliver on our ambitions in this exciting market.
“Looking ahead, we are confident that GVC’s broad international footprint, proven track record of acquisition and strong organic growth will continue to present significant opportunities for further expansion.”
A strong 2020 so far
According to GVC, 2020 has been a strong year for the company so far. Group and net gaming revenue are five and 15% ahead respectively, compared to this time last year.
It said: “This represents a good start to the year and, at this early stage, the board is confident of delivering EBITDA and operating profit in line with expectations.”