British online and land-based sportsbetting giant Ladbrokes has released its interim financial results for the third quarter of 2011 showing that it expects to report a 2.5 percent year-on-year increase in net revenues.
However, Harrow-based Ladbrokes revealed that its net revenues will have dropped by almost one percent for the first half of 2011 when compared with the same period last year while operating profit for the six-month period will have fallen by 5.8 percent year-on-year and 2.7 percent year-on-year for the quarter.
Ladbrokes declared that net revenues from its UK retail operations will have risen by two percent year-on-year for the third quarter helped by a 20.4 percent rise in machine gross win for the same three-month period when compared with the same stage last year
Over-the-counter net revenues are to have decreased by 8.3 percent year-on-year for the third quarter and 4.6 percent year-on-year for the half-year although machine gross win for the half grew by 15 percent when compared with the same six-month period in 2010.
Regarding Ladbrokes digital operations, net revenues are expected to have slumped by 0.7 percent year-on-year for the quarter and 0.1 percent for the first half when compared to the same period in 2010.
“UK retail net revenues have grown by two percent driven by particularly strong growth in machines with continued stability in trend for over-the-counter staking,” said Richard Glynn, Chief Executive Officer for Ladbrokes.
“We have seen good growth in sportsbook sign-ups and actives particularly following the start of our renewed marketing in August. We have significantly increased our bet-in-play football offer and broadened our range of casino games with further expansion in these areas to come.
“Looking forward, we expect operational initiatives already underway to drive further momentum. We will begin using new yield management tools on machines and expect this to drive continued strong growth in 2012. In November, we start live testing of our new online sportsbook, which will launch in the first quarter next year enabling us to promote our expanding range of betting and gaming opportunities more effectively. In mobile, we will launch up to 40 new casino-style slots over the next few months and in October will offer live streaming of one hundred percent of UK horseracing.
“The economic climate in the UK remains challenging and while we expect this to continue we are confident in our strategy and remain in line with the board’s expectations for 2011. We are making good progress on the delivery of our operational and technology milestones and look forward to sharing more detail on these at the full year.”
Source: iGamingBusiness.com
