Ladbrokes boast 3.9% profit rise [1]
LADBROKES has reported a 3.9% rise in its first quarter profit. The rise was stemmed down to its booming retail operations, as well as its online businesses thriving. The digital sector significantly stood out within Ladbrokes’ results. In its statement, it outlined the following:
Digital
· Momentum in customer acquisition with continuing double digit growth in digital sign ups and actives
· 22.4% growth in sportsbook net revenue driven by strong increase in stakes and increase in margin
· Mobile now 20% of sportsbook amounts staked (Q4 2011: 15%)
· Ladbrokes Bet in Play offering bets on more football matches than any other provider according to latest Gambling Compliance survey data
· New website in live customer testing with full live launch set for May
· New contract with Openbet enhances flexibility of development whilst further expanding games content
Richard Glynn, Chief Executive, commented:
“This has been another period of progress for Ladbrokes. UK Retail saw another quarter of strong growth in machines revenue. OTC staking remains resilient and gross win margin, helped by a better Cheltenham festival, was at the upper end of our historical range. We have invested considerably more in digital marketing and customer acquisition remains strong. We are starting to see this drive growth in the topline, particularly in the key focus area of UK sportsbook which was up 22%. Our football Bet In Play offer is now leading the market with up to 800 matches per week. We are continuing to deliver on our trading and digital milestones with further developments expected in the coming months. As stated in February, we are confident of delivering Digital profit growth during the second half of the year as the benefits from our investments converge. At this early stage of the year we are in line with the Board’s expectations for the Group in 2012.”
The online sports betting sector of Ladbrokes also contributed to the 5.9% digital boost in the quarter. Ladbrokes had last year pulled out of talks to buy online gambling businesses 888 and Sportingbet.
