Despite a 2.7 per cent increase in gross win, Ladbrokes\’ operating profits fell by 6.3 per cent to 143.6m, reflecting a run of punter-friendly horse racing results and rising costs.
Revenue has increased by 19% to 5.7bn with the good results from FOBTs and eGaming offsetting declines in Retail and Telephone Betting operations.
FOBTs gross win has increased by 28% to an average of 576 per machine weekly.
The e-gaming division continued to growth across all channels, with a 30% increase in gross win to 58m and the operating profit up 45% to 17.5m.
Despite a 1% decrease in active customers to 228,000, the sportsbook gross win benefited from an increase in the frequency of customer activity.
Poker gross win grew by 92%, with an all-time high number of active players making Ladbrokes Poker the largest poker site in Europe.
“Whilst the first half of the year proved tough for Ladbrokes compared with last year, Retail, Telephone and eGaming all grew revenue. It was also encouraging that overall gross win increased despite a fall in margin due mainly to unfavourable horse racing results and tough Euro 2004 comparatives,” said Hilton Group Chief Executive, David Michels.
“International expansion remains the key for Ladbrokes\’ long-term growth,” Michels said.
“We are looking for partners in an ever-changing world of betting and gaming. We have a fabulous brand name, the biggest legal sportsbook in the world, as well as knowledge and expertise, and although growth in the UK is assured over the next two or three years, we\’ve got to think long term,” he added.
Ladbrokes already have a considerable overseas business, with shops in Ireland and Belgium, and 63 per cent of the company\’s e-gaming turnover coming from abroad.
Ladbrokes also have partners in Greece and Sweden, but they are now looking farther afield, in Europe and beyond, Michels explained, as more countries begin to redefine government attitudes to betting and gaming.
“The world is changing fast, and a lot of countries are looking to deregulation. One of our skills is in business-to-business operations, and that\’s where we are looking to expand,” said Ladbrokes Chief Executive, Chris Bell.
In separate news, Ladbrokes pledged to hand over 10 per cent of their gross profits from bets on UK horseracing to the sport “in perpetuity” when the current method of statutory payment ends in 2009.
“That\’s our promise,” said Bell.
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