Gaming firm GVC Holdings has announced that they're forecasting a drop in gaming revenues for the most recent quarter, as UK retail revenues suffered during the period.
The group said that they're expecting a double-digit drop in revenues for the company as a whole, with the FOBT max bet stake being dropped from £100 to £2 has severely impacted the company's bottom line. A large 36% drop in machine net gaming revenue is the result, and 41 stores were closed during the quarter. It's expected that up to 900 retail shops could be closed due to the drop in revenues.
European retail as a whole has also fell, going down 4% during the quarter, with amounts wagered down 1%. Online revenues remain strong though, with numbers up 12% from last year. Sportsbetting online revenues were up 16%, with casino games up 8%.
Speaking during the briefing GVC CEO Kenneth Alexander said, "I am delighted that 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 net gaming revenue up 12% in the quarter despite the prior period containing part of the World Cup.
"This performance continues to be driven by our industry-leading technology, products, brands, marketing capability, and people."