UK based gambling giant Ladbrokes has released its third quarter 2011 financial results, highlighting a modest increase in revenue and a small decline in operating profit.
Key financial indicators for the third quarter were:
Group net revenue up 2.5%.
Group operating profit of £49.7 million was 2.7% lower year-on-year (up 8.5% if the impact of the World Cup betting in 2010 - £5.3 million - is excluded.)
Growth of 2.0% in UK Retail net revenue
Growth of 6.4% in sportsbook amounts staked and increase in sign-ups of 86% since the start of renewed marketing in August.
Significant expansion of Bet in Play with increase in football events from 200 per week in August to 500 in October and expected increase to an average of 700 from November.
Agreements with three new suppliers of (online) casino slots with 31 new games added since August
Net debt has been reduced by £38.1 million
Online indicators were:
Net revenue decline of 3.5% driven down by poker and Q4 sportsbook margin masked an underlying improvement in customer acquisition and conversion
Q4 sportsbook sign ups up 77%, actives up 24% and amounts staked up 22%
Strong mobile growth with net revenue up 174% to £15.6 million
33% of sportsbook customers placing a mobile bet in H2, up from 12% in FY 2010
Significant expansion of Bet in Play with another 20,000 events to come in 2012
Beta testing of new website underway; full launch in coming weeks
Richard Glynn CEO of Ladrbokes said:
“UK Retail net revenue has grown by 2% 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 (online)casino games, with further expansion in these areas to come."
"In Mobile we will launch up to 40 new casino style slots over the next few months and in October (we) will offer live streaming of 100% of 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. 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.”
"In Digital, we are continuing to invest in technology to improve our trading capabilities, expand our range of products and improve our delivery to the customer. Mobile is delivering impressive growth with further product expansion and innovation to come throughout the year."
"We have begun investing consistently in brand and Digital marketing and we will continue this investment process in 2012 having begun to see tangible benefits in 2011. We have a number of important milestones in the next few months."