Ladbrokes Profits Hit £49.2m In Q3

The UK’s second biggest bookmaker Ladbrokes has released its financial results for the third quarter of 2012, revealing a 3.9% increase in net revenue, although the company’s operating profit was flat year on year, up by just 0.4% to £49.2 million ($79.5 million).
Contributing to Ladbrokes’ lacklustre figures was bad British weather which affected horseracing meetings, as well as the Olympic Games, which reduced by 5% the amounts wagered over the counter at its high street betting shops.
“You had 24 hours of free, high-quality TV sports and it went on for four or five weeks. People were watching that rather than going to betting shops. It’s a once in a lifetime thing,” explained Ladbrokes CEO Richard Glynn.
Nevertheless, in the three months ending September Ladbrokes betting shops recorded a 5.4% rise in revenue overall, assisted by a 11.5% increase in its in-store betting machines. In addition, by the end of the year Ladbrokes now plans to open a further 65 new shops to add to its total 2,400 bookies it already own across the UK.
Over the past couple of years, Ladbrokes has invested in excess of £50 million on technology and its new online sports betting website has now been released, with the migration of customers expected to be complete by Q1 2013. Meanwhile, for the quarter its digital revenues increased by 6.1% compared to Q3 2011, with its online sportsbook up 21.8% and casino and games up 1.1%. However, bingo was down 6.1% and online poker off by 25.7%.
Looking ahead, CEO Richard Glynn commented: “Though the economic outlook remains uncertain, we remain confident in our delivery and are in line with the board’s expectations for 2012.”
Following news of its Q3 results, shares in the company are currently trading up 1.05% at 182.90p, near a 52 week peak of 187.4p. Founded in 1886, Ladbrokes employs 14,000 people and has a market capitalization value of £1.66 billion.