How to Buy Ladbrokes Stock: GVC Stock

Ladbrokes is a major UK high street betting shop that also offers online and mobile gambling services. The company is owned by GVC Holdings , which is behind a number of other casino and betting-related firms.

In this article, not only do we give you a handy step-by-step guide on how you can buy Ladbrokes stock today, but we also discuss the best two online brokers to do this with.

How to Buy Ladbrokes Stock in 3 Quick Steps

Don’t have time to read our guide in full? Below you’ll see three quick steps that you need to follow to buy Ladbrokes stock right now.

Where to Buy Ladbrokes Stock?

Ladbrokes is actually owned by parent company GVC Holdings, so this is who you will be investing money with. As the firm is listed on London Stock Exchange and forms part of the wider FTSE 250 index, there are heaps of online stock brokers that allow you to buy Ladbrokes stocks with ease. With that said, we have listed our preferred stock trading platform currently in the market, which is heavily regulated and allows you to deposit funds with a debit/credit card.

Plus500 – CFD Broker to Trade Ladbrokes Stock

If you are more interested in trading Ladbrokes stocks on a shorter-term basis, it might be worth opting for Plus500. The UK broker hosts more than 2,000 stock CFDs including that of GVC Holdings. This offers a number of benefits, such as being able to short-sell Ladbrokes. You can also apply leverage on your stock trade of up to 5:1. This means that a £100 deposit would allow you to trade with £500.

Going down the CFD route means that you will miss out on dividends, as you do not own the underlying stock. Taking the 4.79% yield that GVC Holdings recently paid, you need to bear this in mind. If you do like the sound of leverage and short-selling, Plus500 allows you to open an account with a minimum deposit of £100. You can do this with a debit or credit card, bank account, or Paypal.

Plus500 also offers one of the best mobile trading apps in the online space. This allows you to trade CFDs at the click of the button, no matter where you are. We should also note that Plus500 does not charge any trading commissions at all. Instead, it's only the spread that you will pay. Finally, not only is Plus500 listed on the London Stock Exchange, but it is regulated by the FCA, CySEC, ASIC, and MAS.

Our Rating

• Fast order execution
• No commissions
• Tight spreads

• Stocks only available via CFDs
• Its educational resources are sparse

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80.5%% of retail investor accounts lose money when trading CFDs

Why Invest in Ladbrokes?

When discussing the ins and outs of whether or not Ladbrokes is a good investment, we need to look at the wider group of GVC Holdings. The reason for this is that the parent company holds other gambling-related firms within its group, so companies other than just Ladbrokes will impact its stock price.

This includes the likes of Gala, CasinoClub, bWin, Coral, Foxy Bingo, and PartyPoker. These are actually large-scale firms in the online gambling scene, which is why we need to look at the bigger picture.

Balance Sheet in Relatively Good Shape

Although the wider betting industry has taken a major hit in recent months due to the Coronavirus-related suspension of global sporting events, GVC Holdings does have a relatively strong balance sheet. In the cash flow department, this covers immediate reserves of just over £250 million. When you factor in the company’s estimated cash outlay of £15m in costs, it has more than enough to weather the storm.

On top of this, GVC Holdings also has access to a credit facility of over £530 million. Due to the business-friendly lending regulations that the UK government has installed in response to the pandemic, this will come at much more favourable terms.

Leading Player in Non-Sporting Markets

While it is true that the company’s sports betting division has come to an immediate halt, it is important to note that GVC Holdings is a major player in other gambling sectors. In theory, this particular sector should not be impacted by the Coronavirus shut-down. This includes the likes of online bingo, slots, table games, and poker. Not only is Ladbrokes active in these spaces, but as is the vast bulk of the GVC Holdings group of operators.

Q1 2020 Growth was Strong

Although the impact of the Coronavirus sporting shut-down begun in March, overall the company had a very healthy quarter. For example, online net gaming revenues in the casino segment rose by 18%. Interestingly, sporting revenues rose by 21% in the quarter, albeit, expect this number to decline substantially when the firm reports Q2 earnings. Although total wagering figures were down for the quarter, GVC Holdings saw a slight increase in operating margins.

Dominant in the UK High Street Betting Sector

The UK is home to a huge high street betting shop sector that now consists of well over 9,000 locations. With that said, more than 90% of the space is dominated by five key players – Ladbrokes, Corals, Paddy Power, William Hill, and Betfred. As GVC Holdings owns both Ladbrokes and Corals, it is by far the largest provider of UK betting shops.

What to Consider?

In truth, its been a tough couple of years for GVC Holdings and the wider UK gambling industry. This is why the company’s stock price is still far short of its 2018 heights. With this in mind, we would suggest considering the following points before buying Ladbrokes stock.

Not Knowing When Live Sports Will Return

GVC Holdings is not 100% reliant in the sports betting space, as its portfolio of gambling companies is active in other areas such as online casino games and poker. But, the sports betting scene is still a major marketplace for the company, especially in the offline retail bookmaker scene. As per the Coronavirus pandemic, the entire global sporting calendar has come to a halt.

Suspension of Dividends

GVC Holdings most recently paid a very healthy dividend yield of 4.79% which is well above the FTSE 250 average. Unfortunately for stockholders, the company has since announced a suspension of dividend payments until further notice. As such, the only way you will be able to make money with your Ladbrokes stock investment is via capital gains.

Burning Through Cash

While it is true that Ladbrokes has a surplus of £250 million in cash reserves, as well as a credit facility of well over £530 million, there is no getting away from the fact that the firm is currently burning through its reserves. When the Coronavirus pandemic came to fruition in Q1 2020, GVC Holdings reported that it expects to lose out on £100 million in cash per month as a result of the shut-down of its UK betting shops. Although the furloughing of its staff has reduced this to £50 million, this is still a major shortfall in reserves.

About Ladbrokes Stock

Company and Stock history

Ladbrokes is a UK-based bookmaker that is active in both the offline and online gambling sectors. Regarding the former, this includes thousands of UK betting shops. And the latter, Ladbrokes has a strong presence in the online gambling scene. Its gaming suite includes sports betting, casino games, live dealers, bingo, poker, and virtual sports.  The company itself owned by GVC Holdings, which is behind a number of leading gambling operators. This includes Coral, Foxy Bingo, PartyPoker, and Win.

GVC Holdings is listed on the London Stock Exchange, and it also forms part of the FTSE 250 index. The company has had somewhat of a rollercoaster ride since it went public in 2004. Initially, the firm was priced at 450p per share. It then went on a downward spiral, hitting lows of 93p in mid-2007. With that said, GVC Holdings then enjoyed an upward trajectory that lasted for just under 10 years, where its stocks peaked at 1,125p.

However, when the UK government decided to reduce FOBT (Fixed-Odds Betting Terminal) betting stakes from a maximum of £100 to just £2, this impacted the wider UK bookmaker space. As such, GCV shares hit 2019 lows of 626p. In response to the Coronavirus pandemic, its stock price crashed to lows of 363p in March 2020. The company rebounded quickly though, with a May 2020 price of 722p inching the firm in the right direction.

Should I Buy Ladbrokes Stock?

Before the Coronavirus pandemic came to fruition, which effectively cancelled the global sporting calendar in a matter of weeks, GVC Holdings was enjoying a brief period of success on the stock markets. Not only had it recovered much of its loses from the FOBT stake reduction of 2018, but it was inching closer to its prior all-time high of 1,125p.

It is also notable that many of the companies operating under the GVC Holdings umbrella are involved in non-sporting related markets, such as poker, bingo, and casino games. However, for as long as sporting events remain cancelled, there a major gap in the firm’s operating income.

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