Ladbrokes 'positive' despite profits drop

Ladbrokes 'positive' despite profits drop

Thursday, October 22, 2015 Totally Gaming
Jim Mullen focused on improvements in digital and retail during Q3

Ladbrokes shares were up by almost four per cent today (Thursday) as chief executive Jim Mullen described the company’s Q3 performance as “positive” despite pre-tax profits falling by 57 per cent.

In a trading update, the gambling operator reported that pre-tax profits of £14.3m (€19.5m/$22.1m) were in line with expectations, while revenues were down 0.7 per cent compared to Q3 last year, but up two per cent when stripping out the benefit of the Fifa World Cup in 2014.

However, Mullen focused on the 6.4 per cent rise in digital revenue – which was 10.5 per cent up excluding the World Cup – as well as operational highlights, such as the national launch of multi-channel, further self-service betting terminals (SSBT) roll-out and increased marketing to drive footfall.

Mullen also pointed out that the period only partially included the company’s new strategy, which will focus on marketing and digital growth.

“These numbers reflect the first 68 days of activity since we announced our organic plan to aggressively invest and grow our recreational and multi-channel customer base particularly across UK retail, Ladbrokes.com and Ladbrokes Australia,” Mullen said.

“It is early in our journey, but today's results reflect positive initial progress and customer traction with continued increases in staking and actives across digital and improved staking trends in UK retail driven by football and racing. Operating profit as expected is down reflecting continued headwinds from higher taxation as well as our increased marketing spend to build our customer base.

“With sports betting at our core we see customers responding well to our products, our value and to our recently launched multi-channel offer. All these initiatives are part of the long-term plan for Ladbrokes with our targets based around delivery on hard financials for 2017.”

Mullen added that the proposed £2.3bn merger with Coral is “on track” and that Competition and Markets Authority (CMA) work is “progressing”.

Latest

Golden Race punches into retail and mobile markets

First to market: 888 games now available on Google Play

Mobile payments: Sportito partners with Boku

NetEnt’s ‘mobile-first’ mindset paying off

Gaming Products & Services Directory

The essential directory for the gaming industry