New Ladbrokes C.E.O Shaking Things Up

Published Thursday, August 05, 2010 -

Ladbrokes is confident Richard Glynn is the right man for the job. He has proved an acute ability to transform company performance in his previous roles as CEO and chairman of Sporting Index. He led a shift from telephone to online-based trading, with 80% of bets now taken on the firm’s website. It is believed that a similar transformational act will do the same for Ladbrokes.
Glynn has undertaken an operational review of Ladbrokes as he looks to close the gap on rival William Hill which has outperformed Ladbrokes particularly in online gambling. The review, which has been given the codename, "Project Galvanise", has identified a number of areas in which Ladbrokes can improve its performance.
Thursday, the new CEO made an announcement of a management shake-up as well as the restoration of its dividend and a new deal to buy gambling machines for its outlets. The changes will also include a new special focus on the customer, improving the 'e' performance, the brand effectiveness and enhancing the technology background of the group," Glynn said. For Ladbrokes, machines and online operations are the two growth areas that cannot be ignored.
Of note are some management changes. Richard Ames will look after the retail operations in the meantime, with Gary McIlraith joining from Alix Partners to become managing director of digital channels, international and strategy. Former Gala Coral chairman and chief executive John Kelly has joined the board as a non-executive. Based on optimism over the new management, shares in the company have risen by 17 percent since the beginning of July.
Ladbrokes has also struck a four-year deal for Global Draw to supply 95 percent of its shops with gambling machines, with the rollout starting early next year. Glynn said that although Ladbrokes continues to look for acquisition opportunities, it will centralize marketing and shut some offices and move workers to its headquarters in Harrow , London . He added, "It’s too early to quantify savings."


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