| Ladbrokes Reports Decine in Operating Profits |
| Written by Mark Bennett |
| Friday, 17 February 2012 09:49 |
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The UK online and land based gambling operator, Ladbrokes has released its third quarter results for 2011 showing a decline in operating profits even though revenues rose marginally. The period which ended 30th September showed: * Group net revenue up 2.5 percent. * Group operating profit of £ 49.7 million was 2.7% lower year-on-year (up 8.5% if the impact of the World Cup betting in 2010 - £ 5.3 million - is excluded.) * Growth of 2.0% in UK Retail net revenue * Growth of 6.4% in sportsbook amounts staked and increase in sign-ups of 86% since the start of renewed marketing in August. * Significant expansion of Bet in Play with increase in football events from 200 per week in August to 500 in October and expected increase to an average of 700 from November. * Agreements with three new suppliers of [online] casino slots with 31 new games added since August * Net debt has been reduced by £ 38.1 million Richard Glynn the Ladbrokes CEO added: “UK Retail net revenue has grown by 2% driven by particularly strong growth in machines, with continued stability in trend for OTC staking. We have seen good growth in Sportsbook sign ups and actives, particularly following the start of our renewed marketing in August. We have significantly increased our Bet in Play football offer and broadened our range of casino games, with further expansion in these areas to come." Glynn suggested the company would start live testing its new online sportsbook later this year which would increase the range of betting and gaming opportunities. "In Mobile we will launch up to 40 new casino style slots over the next few months and in October will offer live streaming of 100% of UK horseracing” the CEO added. "The economic climate in the UK remains challenging and whilst we expect this to continue we are confident in our strategy and remain in line with the Board's expectations for 2011. We are making good progress on the delivery of our operational and technology milestones and look forward to sharing more detail on these at the full year.”
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