Ladbrokes beats the stakes
BRITAIN’S second-biggest bookmaker Ladbrokes reported a better-than-expected full year operating profit yesterday as strong growth in revenue from gambling machines helped its retail business to perform strongly despite tough market conditions.
The company, which has around 2,100 shops in Britain, said yesterday group operating profit fell by 0.4 per cent to £193.5m.
The average forecast was £187m, according to a poll of analysts.
Gross win, which is total bets minus payouts, from machines rose by 19.2 per cent to £360.9m.
Chief executive Richard Glynn (pictured) said the company’s retail business had performed strongly, with bets placed over-the-counter marginally up on 2010.
“The contribution from machines has been excellent and we have grown profit per shop for a second consecutive year despite a comparatively poor gross win margin in the second half of 2011 and continued cost pressures.”
Trading in the fourth quarter was hit by a high number of favourites winning in Premier League football.
Rival William Hill said in January that it had seen an upturn in bets placed over-the-counter in its shops and money taken by its gambling machines as cash-strapped consumers looking for cheap entertainment boosted trade.