Ladbrokes slides despite World Cup
A boost from World Cup betting failed to prevent a slide in profits at Ladbrokes today as the bookmaker counted the cost of unfavourable sporting results.
The group, which has more than 2,200 betting shops in the UK and Ireland, was also hit by its race to roll out new machines and services in time for the tournament.
Ladbrokes posted profits of £27.7m (€34.7m) for the first six months of the year, a decline of 49.7% on a year earlier. The company said it took bets worth £115.3m during the tournament, a rise of 22.4% on four years ago.
Half-year operating profits from its UK retail estate fell 21% after some difficult trading weeks, particularly for football in January and the higher than average percentage of winning horse favourites.
It said: “The major flat festivals in the period at Epsom and Ascot were particularly customer friendly with Ascot seeing 14 winning favourites in 30 races. We recorded losses in both festivals.”
Horse racing struggles to attract younger betting customers and Ladbrokes said staking declined in the latter part of the first half, particularly during the World Cup.
It achieved success in its focus on football, with staking in the 2013/14 football season growing by 25% on the previous year.
Chief executive Richard Glynn said the group achieved all its planned operational improvements in time for the World Cup. They included new gaming machines and its service allowing punters to bet on sport and play casino games from one account.
He added: “Our offer performed well, delivering a great betting experience for our customers and a good result for the business in a highly competitive market.”
Mr Glynn said the company made substantial progress but there was much to play for: “We now have the products, the platforms, the people and the brand in place to deliver. Ladbrokes today is a far stronger company and well positioned for growth.”
Shares rose 4% following the half-year results.
