Ladbrokes pocketed £102m in furlough cash despite record online sales
Ladbrokes received £102m from the furlough scheme, despite an online boom which overshadowed lockdown closure losses.
Accounts published yesterday show that Ladbrokes claimed £57.5m in 2020, and a further £44m in 2021.
The furlough scheme was aimed at helping businesses that were forced to close during lockdowns, hoping to relieve the burden on struggling companies.
Ladbrokes is owned by global betting giant Entain, which enjoyed huge boosts in profits during the Covid-19 crisis as bored households turning to online gambling and casino games during lockdowns.
Late last year it was approached for a possible takeover, valuing the business at around £16bn, although US rival Draftkings ultimately walked away.
The company’s betting shops, which include 2,845 premises and include Coral, were closed for long stretches during 2020 and missed out on revenues due to sporting events being cancelled.
As a result, revenues for 2020 fell heavily from £983m to £681m. However, a £462m pre-tax profit turned into a £48m loss.
All companies impacted by the pandemic were allowed to claim from the Government’s Covid furlough scheme.
However, some that claimed have subsequently returned the cash after results during the period were better than expected – particularly for businesses with strong online operations alongside shuttered high street operations.
Competitor William Hill opted to return £24.5m of furlough money in August 2020, citing the “strength of the post-lockdown recovery.”
This has led to some commentators calling on Entain to do the same, but the betting giant has declined to repay the furlough money saved.
Meanwhile, revenues for Entain in 2020 hit £3.6bn – unchanged on the previous year with pre-tax profits of £114m.
More recently, the company revealed further strong growth in its global online betting and gaming business – recording 23 consecutive months of rising revenues in the division.
A spokesman for FTSE 100-listed Entain said: “The furlough scheme was a sensible and highly welcome policy intervention that helped us, as one of the country’s largest retailers, to maintain the livelihoods of more than 14,000 retail colleagues on full pay.
“Whilst the virus is still with us and the outlook, although improving, is still far from certain, the board will continue to keep the situation under review.”
Rival William Hill repaid £24.5 million in furlough money claimed, whilst Paddy Power owner Flutter did not make any claims for furlough cash – although both have a smaller number of sites compared to Ladbrokes and Coral.