Ladbrokes Reports Disappointing Financial Results, but Remains Optimistic

The British bookmaker’s digital division has had a bad financial year, with profits dropping more than 74% in 2013.

Online and mobile betting company Ladbrokes admits to be disappointed by last year’s financial results, but claims it remains optimistic about 2014. In 2013, the company’s net revenue dropped by a mere 0.6%, to GBP 1.1 billion.

While this decrease seems insignificant, the news is much worse for Ladbrokes’ digital division. Profits made by the company’s online sportsbooks in the UK and worldwide have seen a significant fall of 74.2%, from GBP 31.8 million in 2012 to GBP 8.2 million. Total operating revenues also fell by 32.9%, from GBP 206.1 million to GBP 138.3 million.

Earnings from Ladbrokes’ betting shops have gone down 25.9% and European retail operating revenues also fell 22.8% to.

Focusing on delivery and growth

Richard Glynn, Ladbrokes’ chief executive officer, described the results as “disappointing”. However, he pointed out that the company has made some progress over the last year. “We remain confident about the direction of the business and the momentum we are creating. As we have made clear, H1 is about delivery and H2 is about growth,” he affirmed.

According to him, the company’s priorities are completing the remaining platform, product and capability upgrades, with focus on single wallet and customer relationship management, which “will begin to deliver tangible benefits from the World Cup onwards.”