Ladbrokes Reports 6% Fall In Q1 2010 Revenue Results

London-based online gaming company Ladbrokes has reported a 6% drop in net revenue in Q1 compared to the same period last year, with the fall in UK over-the-counter bets contributing heavily to the decline.
Ladbrokes owns more than 2,750 betting shops throughout the UK, but has experienced an 11% drop in revenue from bets taken in Q1, with the average wager per slip falling 1.1% to £8.10.
Ladbrokes online business also fell, with revenue down 2% overall. Despite posting a 13% gain in its Sportsbook, and a 5% net revenue gain in its Bingo, these figures were not enough to off-set the effects of a 10% decline in Poker net revenue and a 6% decline in Casino growth.
Despite the gloomy figures, operating profit at Ladbrokes actually rose 3% helped mostly by more beneficial tax rates enjoyed by the company’s internet sports-gambling business, having moved its operation to Gibraltar last year.
Commenting on the Q1 2010 figures, Ladbrokes CEO Richard Glynn, who took over the position from Chris Bell earlier this year, said:
“The economic environment remains challenging and the strength of UK consumer confidence post the election is difficult to gauge. However Group profitability year to date has been broadly in line with expectations. Debt levels have already fallen significantly this year reflecting the continued cash generation of the business and the benefit of the tax settlement.”
Following the results, Ladbrokes shares shed 3.8p or 2.5% of their worth to 147p, giving the company a market valuation of £1.3 billion pounds ($1.9 billion). Shares in the company have fluctuated greatly over the past year, experiencing a 52 weeks high of 191.36 to a low of 119.60.
Commenting on the challenges ahead for the company, Richard Glynn said; “Although only a few weeks into my role as Chief Executive of Ladbrokes I am hugely enthused by the longer term opportunities available to the company and I am excited at the prospect of revitalising the Ladbrokes brand and re-energising the business.”