Digital business helps Ladbrokes

Ladbrokes revealed that its overall operating profit for the twelve months to the end of December improved by eight percent year-on-year to us$ 313.8 million while the period additionally saw it reduce its net debt by us$ 102 million to us$ 589.1 million, which represents 1.5 times its earnings before interest, tax, depreciation and amortisation for 2012.

Harrow-based Ladbrokes entered into an agreement late last month to purchase Global Betting Exchange Alderney, which is the parent firm of global betting exchange operator Betdaq, for an initial consideration of us$ 39.4 million and announced that annual net revenues from its digital business improved by nine percent year-on-year to us$ 271.2 million. Excluding jurisdictions exited over the course of the previous twelve months such as Greece, Cyprus and Poland, the English firm declared that this percentage grew to 10.3 percent.

Ladbrokes said that product development over the course of 2012 had been ‘focused primarily on our core sportsbook product’ with ‘innovations’ in trading alongside the continued expansion of in-play wagering. Online sportsbetting revenues for 2012 grew by 26.1 percent year-on-year to us$ 118.4 million while a new-look sportsbook website is expected to launch by the end of the first quarter. “We are continuing to transform Ladbrokes with the resilience and reinvigoration of the UK retail estate driving another year of growth in profit-per-shop,” said Richard Glynn, Chief Executive Officer for Ladbrokes.

“The development of the digital business is progressing well and our investment in trading systems is generating improved quality of earnings. Ongoing business momentum has enabled us to deliver a strong group performance with growth in revenue, operating profit and dividend.

“[This year] will see us continue to drive investment in areas where we see opportunities to grow the business. We will accelerate our programme of shop openings, focussing on areas of unmet demand. In machines, while the market is becoming much more competitive, we expect to generate continued growth through the use of Odds On, more exclusive games and the roll out of the latest new terminal towards the end of the year.

“In digital, after a delay during 2012, we will complete the roll out our new of our sportsbook and mobile platforms in the first quarter and second quarter 2013 respectively and look to improve our capability around customer relationship management. We expect these developments to drive growth in digital revenues and earnings particularly during the second half of the year.”

In a brief statement issued on Thursday, Ladbrokes also divulged that Christopher Rodrigues is set to stand down as a non-executive director and retire at the conclusion of the company's annual general meeting being held on May 1.