Ladbrokes profits collapse by almost 50pc
Ladbrokes has reported a collapse in pre-tax profits of almost 50 per cent of to £27.7m for the six months ended 30 June.
The bookmaker said it had completed its switch to a new partnership with software developer Playtech, but admitted the move caused more disruption than it had anticipated.
Underlying earnings per share were down 38.6 per cent to 4.3p, while the amount contributed by high rollers to operating profit fell by £3.4m to £10.7m compared to the same period last year.
Richard Glynn, chief executive, commented:
In the first half of 2014 we successfully delivered all of the planned operational improvements in time for the World Cup. Our offer performed well, delivering a great betting experience for our customers and a good result for the business in a highly competitive market.
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.
The bookie already warned shareholders that first-half figures were likely to make for grim reading as a result of the digital overhaul.
The company has been hit hard by tax changes to gaming machines and the rising cost of horse racing picture rights.
In February, Ladbrokes confirmed it would be closing between 40-50 betting shops.