UK: Ladbrokes Coral betting shops sales hit by challenging high street environment

Chief executive Jim Mullen said the retail business continued to “exhibit the negative trends reported since the middle of 2016”, something he said was “driven by the challenging UK high street environment” as well as its efforts to push more customers online.

Its European retail business also suffered but for different reasons.

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The group said sports results in Italy were unusually bad in February and March for bookmakers and this had had an adverse impact on its Eurobet business.

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Online remains a fast growing area with sales up 22pc, fully counteracting the drop in retail and helping push group-wide revenue up 5pc.

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The company's shares dropped roughly 2.6pc in early trading to 125p.

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Mr Mullen said the online market remained “highly competitive” but stated its focus on data-driven marketing, which helps it send more bespoke offers to customers, would support the division’s growth.

The chief executive said this year's Cheltenham festival was kinder to the bookmakers than last year but One For Arthur's victory in the Grand National at a relatively short price broke a five-year run of "very bookmaker-friendly results in the nation's favourite race". He added that the amount it earned from the Aintree horse racing event was also behind last year.

Overseas, its Australian website also saw stakes rise 49pc compared to the same period last year, pushing net revenue, which is the amount staked minus winnings, up 59pc.

Mr Mullen added that the integration of Ladbrokes and Coral was progressing, with staff starting to move from its Rayners Lane office to its Stratford site and its online brands all using the same technology platform.

With the general election set for June, the company said it was likely that the Government's triennial review of the gambling industry, which among other things is considering whether to reduce the amount gamblers can stake in one go on fixed odd betting terminals, would be delayed until the autumn.