Ladbrokes Shares Third Quarter Interim Numbers

UK based gambling company Ladbrokes has released its third quarter 2011 interim numbers.

The numbers released in the statement reveal:

• Group net revenue is up 2.5% for the third quarter.
• Group operating profit is down 2.7% from the same period last year, to £49.7 million.
• UK retail net revenue up 2%.
• Machine gross win per terminal up 19.8% from the same period last year to £866.
• Bet In Play expansion from 200 per week in August to 500 in October.
• 31 new slot games added since August.

Other numbers released by the company were:

• Sportsbook wagers grew 6.4% from the same period last year. Net revenue was down 6.0% because of an adverse movement in gross win margin due to a strong football margin last year and unfavorable results.

• Mobile bets for the third quarter were up 163% from the same period last year, with 21% of digital customers placing at least one wager through a mobile device.

• Casino net revenue up 11.2% from the same period last year. A 13.3% growth in actives combined with the net revenue is attributed to an increase in slots and strong VIP activity.

• Poker revenue down 12.5% from the same period last year with a 14% drop in active players.

• Bingo revenue down 5.7% over the same period last year, with active gamblers down 3.9%.

• The company reduced its debt by £16.5 million from £449.4 million at 30 June 2011 to £432.9 million at 30 September 2011.

Ladbrokes CEO Richard Glynn commented on the numbers, saying:

“UK retail net revenue was driven by particularly strong growth in machines, with continued stability in trend for OTC staking. 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 Q1 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 all UK horseracing.

"The economic climate in the UK remains challenging and whilst we expect this to continue we are confident in our strategy and remain in line with the Board’s expectations for 2011."

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