GVC’s problems in the domestic market are deepening. The gambling operator posted an 18 percent decline in revenues from its UK retail operations for the third quarter to September 30, 2019.
The gambling operator also announced a 2 percent decline in its year-on-year constant currency net gaming revenue (NGR) for Q3 2019. The overall NGR, fell 1 percent when the constant currency factor was not considered. The company’s like for like NGR dropped by 36 percent.
GVC is amongst the top gambling and betting operator in the UK and operates the popular brand Ladbrokes Coral. The decline in the NGR is attributed to the decline in the revenue from its domestic retail operations.
GVC has blamed slumping revenue on the new betting regulation which brought down the maximum stakes on the fixed-odds betting terminals (FOBTs) from £100 ($122.40) to £2.
During the third quarter, the gambling operator shut 41 of its betting shops. The gambling operator has already announced to shut about 900 betting shops in the UK over the next two years.
In its statement to the press, GVC said: “We now expect up to 900 shops to be at risk of closure, affecting up to 5,000 roles, over the next two years as a result of the reduction in maximum stakes on FOBTs to £2 that came into force on 1st April, and there are a number of shops that have been identified for closure as part of this process.
Kenny Alexander, GVC CEO, said: “I am delighted the group’s financial performance has allowed us to upgrade our full-year EBITDA expectations again.
“Online momentum remains strong across all major territories, with NGR up 12% in the quarter.”