Ladbrokes results.

To all the punters out there!except the "high rollers"

Don't you just hate words like machines and virtual.

Ladbrokes unveil better than expected results


LADBROKES on Thursday unveiled slightly better than expected 2008 figures, with the retail and egaming operations contributing strongly.

Chris Bell, Ladbrokes chief executive, said: "The prevailing economic conditions were, and will remain challenging throughout 2009, but our UK retail businesses saw gross win growth of 4.7 per cent over the period (compared to 3.3 per cent in 2007), driven by our 8,044 machines and extended trading hours, while egaming revenue has increased 20 per cent."

Overall profit, before tax and finance costs, of £324 million fell by 23 per cent, but this is attributable to some extraordinary losses from 'high rollers' - who bet mainly on racing and football - the year before.

"We have always been clear that the frequency of high roller activity is unpredictable," said Bell.

Ladbrokes produce figures with and without high rollers, and without them profits rose almost one per cent, to £244m.

Although egaming revenues jumped 20 per cent, overall profit from this sector remained static at £55m.

John O'Reilly, managing director of remote betting and gaming, said this was because of a huge investment in securing new players, which includes advertising in the UK and Scandinavia.

O'Reilly underlined they would keep their sportsbook operation in the UK, and said: "Yes, some companies are relocating, and we do pay £275 million a year in taxes, and might prefer to reduce that, but overall we believe there are good strategic reasons to stay as we are."

He also said betting in play generally on the net had taken off, which for him emphasises that Ladbrokes' core business remains bookmaking.

Richard Ames, managing director of UK (2,091 shops) and Ireland (286 shops) retail, was pleased at impressive growth in some of the first 16 shops Ladbrokes had bought in Northern Ireland (where machines are permitted), but overall the Irish Republic was difficult (where there are no machines; profit fell nearly nine per cent).

Ames said that although Hills planned to close 14 shops in Ireland, and another 18 had gone, Ladbrokes would soldier on despite the effect of the planned doubling of turnover tax there to two per cent from May 1.

He said: "We think a lot of players are suffering, with a quarter of the shops facing closure due to the tax impact, plus general economic decline. But there has been significant investment in our Irish shops, and we hope to introduce our successful Odds-On card there in time for Cheltenham. We'll wait and see what happens."

In the UK he said the merging the pictures from TurfTV and SIS had caused problems, with greyhounds and virtual business suffering particularly.

O'Reilly concluded by stating core objectives for the year ahead included eve"We are seeking a level of consistency in our relationship with racing as part of a general climate of fiscal and regulatory certainty."

Ladbrokes shares closed on Thursday night at 184.50p, up 2.75p on the day.