Ladbrokes 888 takeover talks terminated

Ladbrokes' CEO Richard Glynn said he 'simply decided it was not in the interests of shareholders'.

Ladbrokes also released a trading update today revealing that net revenues (excluding high roller customers) were up 2.3% in the first quarter despite a poor Cheltenham Festival that saw revenues down £10.7m after a run of winning favourites.

Online net revenue was up 1.2% during the period with strong growth in both casino and bingo sectors being offset by lower revenues from the sportsbook and poker, which dropped by 5.3% and 32.8% respectively. Bingo showed 18.8% net revenue growth in spite of a 19.9% decline in active players, with player yields up 48.6%.

Ladbrokes also showed strong growth in mobile betting with a 250% increase in revenue year on year. Almost one in five online customers placed a bet using the site’s mobile phone app in the period in question.

CEO Richard Glynn said, “We expect the economic climate in the UK to remain challenging in 2011 with consumer confidence and disposable incomes continuing to suffer. Notwithstanding this, at this early stage in the year, the business is performing in line with the Board's expectations.'

Ladbrokes also announced that Greene King finance director Ian Bull will be its new chief financial officer, starting from July.

888 yesterday posted its best quarterly results since withdrawing from the US market in 2006. 2011 first quarter revenues increased nine-percent year-on-year to $75 million after strong performances from casino, bingo and poker products.