Ladbrokes’ online bet is a profits loser
BOOKMAKER Ladbrokes yesterday posted a 49.7 per cent slump in profit during the first half of the year to 30 June after disruption hurt its online profits due to the switch to a new software developer.
Britain’s second-biggest bookie after William Hill has struggled to establish its online presence and an alliance with software developer Playtech has taken longer than expected to deliver improvements.
Overall revenues were helped by the World Cup, which chief executive Richard Glynn said delivered “a great betting experience for our customers and a good result for the business”.
Ladbrokes reported profits of £27.7m, down from £55.1m during the same period in 2013, while revenues rose 2.6 per cent to £577.8m.
“In the first half of 2014, we successfully delivered all the planned operational improvements in time for the World Cup,” said Glynn.
In March 2013, Ladbrokes partnered with Playtech to move over to a new online gaming platform. However, this process took longer than expected after Ladbrokes had to see out the contract with its existing supplier, Microgaming. Glynn had said that it was crucial that Ladbrokes ready its digital offering in time for the World Cup.
“We have made substantial progress and while there is more to do there is also 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,” he added. The World Cup boosted Ladbrokes’ digital revenues by 25.9 per cent – mobile stakes rose 1,100 per cent – with retail betting up 7.9 per cent.
Ladbrokes shares rose as much as 4.3 per cent in morning trading, but later pared gains to close down 0.46 per cent at 129.90p yesterday.