Member Article

Profits tumble at Ladbrokes as over 100 new stores added

Profits have tumbled at high street betting shop Ladbrokes by over 30% during 2013.

Group net revenue was down only slightly, although a major £51.6 million cost was incurred by the switch to digital technology, business restructuring and licensing of new shops.

The company have adopted the online betting software of Isle of Man firm Playtech to drive its digital revenues.

Ladbrokes also said it had opened 121 new shops in prime footfall locations, during the period.

Self-service betting terminals, Sky TV and free Wi-Fi for customers was rolled out across its premises in the second half of the year.

Chief executive Richard Glynn said: “While our financial results for 2013 were disappointing, we made real operational progress which has continued into this 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. Our immediate focus is on the completion of our remaining platform, product and capability upgrades, notably single wallet and CRM, which will begin to deliver tangible benefits from the World Cup onwards.

“The early evidence from our changes to the desktop sportsbook and to our mobile offer are encouraging, giving us confidence that where our product upgrades and improved capabilities converge behind our brand, we have a powerful proposition. We look forward to competing even harder through the course of this year.”

This was posted in Bdaily's Members' News section by Tom Keighley .