The integration of Ladbrokes Coral appears to be going even better than management at GVC (GVC) had anticipated. The gambling giant expects to generate at least £130m in cost synergies by 2021, up from its original £100m estimate. GVC and Playtech (PTEC) are also in talks on updating the existing services agreement between the two companies, which would give Playtech access to GVC’s brands, while still allowing sufficient flexibility for synergies. Ladbrokes Coral had an agreement with Playtech to operate its digital platform, whereas GVC’s is in-house.
During the first 20 weeks of the financial year GVC reported a 7 per cent increase in net gaming revenue, driven primarily by online play. GVC’s digital brands grew net gaming sales by almost a fifth, while Ladbrokes Coral’s increased by 14 per cent. This helped make up for a tough period for the retail business. Retail net gaming revenue fell by 5 per cent after 12 per cent of horseracing fixtures during the period were cancelled, along with bad weather affecting footfall.
