Ladbrokes Q1 Profit Up 3.9% To £50.4 Million

UK gambling company Ladbrokes has released its Q1 results for the first three months of 2012, revealing an 8.9% growth in the group’s net revenue, while operating profit was also up 3.9% to £50.4 million ($80.8 million).
The company’s impressive figures were driven by its 2,100 UK based retail betting shops experiencing a 22% increase in  machine revenues, as well as strong over-the-counter bets. In addition, Ladbrokes’ sportsbook performance was up 22.4% which positively impacted the company’s digital vertical which experienced a 9% growth in its net revenue.
Recently, Ladbrokes has been intensely marketing its digital offering, and commenting on its encouraging performance, chief executive Richard Glynn stated:
“..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.”
There was also solid growth in people signing up to its website, with bets placed from mobile phones now accounting for around 20% of its sportsbook. However, other parts of the company’s  online business continued to falter, with casino net revenue down 4.8%, Poker down a huge 26.8% and Bingo down by 2.6%.
Nevertheless, Ladbrokes financial report was greeted favourably by the market with shares in the company rising 4.4% yesterday and now trading close to its 52 week high at 175.10p.  Ladbrokes currently has a Market Capitalisation of £1.59 billion.
Other top UK gambling business William Hill also released its finacials this week showing a 12% rise in the groups net revenue. Nevertheless, brokers Nomura says it still favours Ladbrokes (LAD) “..given LAD’s catch-up potential from its digital division and the ongoing uncertainties surrounding the structure of William Hill Online.”