Ladrokes Online Sports Betting Sees Profit Surge

Published Monday, August 08, 2016 - Online-Casinos.com
Ladrokes Online Sports Betting Sees Profit Surge

Ladbrokes the iconic British bookmaker has been the subject of takeover talks recently but has also posted exceptional financial results for the first portion of 2016.  The company has been operational since around 1900 and has seen a number of changes in its structure.

In September of 2013, Ladbrokes issued a warning that full year profits from its e-gaming division would be much lower than originally expected. Ladbrokes CEO Richard Glynn said at the time, "Our digital earnings have been disappointing, reflecting a lack of competitiveness in sportsbook, lower margins than planned, and a greater disruptive impact than expected from the transition necessary to grow digital for the long term,"

That situation has changed dramatically with the announcement the firm has had a 13% rise in revenues in better-than-expected interim results this year. Ladbrokes made £661.8 million (€790.6 million/$880.7 million) during the first half of the year to June 30, while pre-tax profits gained 61% year-on-year to £39.8 million.

Ladbrokes’ operating profit was up 34% to £52.3 million, which was well ahead of management expectations and revenue from its digital sector was up 41% to £158.1 million.

Investors are optimistic the merger between Gala Coral and Ladbrokes will soon be cleared. The company is in the process of merging with Gala Coral and performed well in the U.K. and Europe, with revenue growing 6% and 7% in both markets respectively to £436.6 million and £64.4 million.

Ladbrokes chief executive officer Jim Mullen commented, "These strong numbers show customers are responding positively to the new strategy at a time when the sporting gods have generally been on our side and we've enjoyed some helpful bookmaker friendly results.

"We will continue to compete hard on pricing, product and customer services and maintain a relentless focus on meeting and exceeding customer expectations.

“With the merger on the horizon we recognise there is a lot of hard work still to come, but this is an exciting time for Ladbrokes and we approach the opportunities ahead with a strong sense of confidence."

 

 

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