World Cup lifts Ladbrokes Q3 profits
Ladbrokes' third quarter figures show profit growth of 128% compared to last year, thanks largely to the World Cup.
Ladbrokes’ group operating profit for the third quarter of this year rose 128% compared to the same period last year boosted by a lucrative World Cup and is on track to meet full year earnings, it said in an interim statement released this morning.
Britain’s largest bookmaker saw its profit rise from £22.4m in 2009 to £51.1m, “reflecting higher net revenue performance and lower operating costs,” it said.
Ladbrokes had previously recorded less than impressive half-year results earlier this year, with net revenue excluding high rollers down 2.4% and operating profit up 5.1% to £103.6m from £98.6m in the first half of 2009.
Group net revenue excluding high rollers was up 12% on last year due mainly to a successful football World Cup. Egaming net revenue was up 17%, with growth in sportsbook, casino and bingo. However, poker was down 27% due to “industry-wide issues regarding liquidity in Europe compared to US facing sites,” a statement read.
Ladbrokes saw net revenue at its UK retail operations grow 12%, thanks to a rise in revenue from its in-store gaming machines and in-store wagers. Chief executive Richard Glynn said the company would be looking to add outlets where financially viable. “Our job is to make sure that we are as efficient as possible and that our outlets are as attractive as possible. But it’s going to be a really tough 12 months “ that’s where we start from,” he told reporters.
Glynn, chief executive since April, said: “Although bolstered by successful latter stages of the World Cup and an easy comparative period, the growth rates achieved in the third quarter give the board confidence that the group is on track to meet its full year expectations.
“Ladbrokes has a great brand and a strengthened management team determined to drive operational improvements going forward. 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.”
Glynn told reporters this morning that bidding for the state-owned betting firm the Tote was “not highest on our agenda”, although Ladbrokes would continue to monitor the situation.
Ladbrokes moved its online sportsbook to Gibraltar at the end of last year as a means of cutting tax costs.