Ladbrokes Profit Soars 128% in Q3 2010 To £51.1m

The UK’s biggest bookmaker Ladbrokes saw its operating profit rise by an impressive 128% in Q3 2010, which the company put down to “higher net revenue performance and lower operating costs.”
Ladbrokes have now registered a rise in its profits from £22.4m in Q3 2009, to £51.1m in Q3 2010 with the FIFA Football World Cup, as well as 22 draws in the Premiership contributing significantly to the company’s improved operating profit.
Ladbrokes net revenue was also up by 12% helped by a 17% increase in their e-gaming offerings, which include sportsbook, casino and bingo.
However, online poker revenue continued to decline dramatically and was down by 27% in Q3 reflecting the decision of Ladbrokes not to operate in the US market. Ladbrokes Poker had previously seen its net revenue decline by 15.7% in the first half of 2010 to £10.7 million compared to £12.7 million in the same period in 2009.
Commenting on the Ladbrokes Poker figures, the company said, “Poker continues to be impacted by the industry-wide issues regarding liquidity in Europe compared to US facing sites.”
Following the Q3 2010 results being released, Ladbrokes chief executive Richard Glynn issued a statement signalling his belief that the company was on target to meet its full year expectations, while also cautioning that next year would be “tough.” 
 
“Ladbrokes has a great brand and a strengthened management team determined to drive operational improvements going forward,” stated Glynn. “Though much remains to be done, I am encouraged by the progress we are making across the Group and I look forward to updating the market in February 2011.”
All in all the Q3 2010 results were greeted optimistically by the market with Ladbrokes shares rising 3.66 to 141.1p in early trading, although they have since returned to 136.70p.
In the past 52 weeks the value of Ladbrokes shares have ranged from between 122.70p and 164.60p.