Ladbrokes director cites Playtech impact after third-quarter success

Ladbrokes director cites Playtech impact after third-quarter success

Thursday, October 23, 2014

Ladbrokes’ latest quarterly financial figures have illustrated that the partnership with online gaming software giant Playtech is already paying dividends, Ciaran O’Brien, the UK bookmaker’s corporate and government affairs director, has told TotallyGaming.com.

Ladbrokes revealed today (Thursday) that its revenue had grown by 13% year-on-year in the latest quarter, through to the end of September.

The bookmaker’s sportsbook division posted 58% revenue growth, boosted by a 21.6% increase in stakes. Mobile sportsbook revenue rocketed by 113%.

Total digital revenue increased by 45.9%, while gaming returned to growth and the bookmaker’s Australian operation jumped by 172%. 

Elsewhere, group operating profit grew to £33m (€42.7m/$52.8m), which represents a hike of 94% on the £17m posted in same period last year.

Having already cited the success of its Australian business, Ladbrokes also highlighted positive results from its various retail operations across Europe. Favourable football results saw UK retail net revenue jump by 6%, retail operations in Spain grew by 83% and the Ladbrokes retail business in Belgium increased by 21%.

“We are sewing early results from our operational improvements and our partnership with Playtech,” O’Brien told TotallyGaming.com.

“Customers have responded well, in particular to our mobile products but also to our new machines in retail.

“We have also benefitted from improved sporting results – particularly at the World Cup and in the English Premier League where Manchester United’s lack of form has helped us.”

O’Brien also said that as the transition to Playtech only took place recently, Ladbrokes anticipates further growth in the fourth quarter and beyond. 

“These results are after just one quarter of finalising our transition to Playtech,” O’Brien said. “We have more opportunities to grow revenue as we move forward particularly in gaming where we have returned to growth for the first time in over a year.”

Richard Glynn, chief executive of Ladbrokes, added that Ladbrokes “is on track”.

He added: “The major operational improvements completed in H1 are now delivering growth.

“We have achieved much operationally in 2014, with further opportunities to drive revenue in 2015 and beyond. Q4 has started in line with our plans and, with usual sporting results, we will deliver full-year results in line with our expectations.”

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