Ladbrokes backing a winner as punter wager nearly £13bn

Published on Friday 17 February 2012 00:00

Ladbrokes yesterday said punters had staked nearly £13 billion in its UK shops last year as the high street bookie continued to defy the economic squeeze.

Over-the-counter betting was “resilient”, the chain said, after it attracted wagers worth almost £2.5bn, while gaming machines drew nearly £10.5bn from punters, an increase of 13.7 per cent on a year earlier.

The group said profit per shop increased 6.9 per cent year-on-year while it posted overall operating profits of £193.5 million, broadly flat on a year earlier after its digital division was hampered by poor trading in poker.

In the company’s 2,000-strong shop estate, the amount left by punters using machines jumped 19 per cent to £360.9m but poor results in horse racing and football cut the over-the-counter gross win by 5.8 per cent to £392.8m.

As well as extending total trading hours by 7 per cent in the period, the chain opened 50 shops and closed 21. Despite the uncertain conditions, Ladbrokes is targeting 60 openings in 2012 under new shop formats which mirror changing trends by catering more for football, bet-in-play and machines.

It said it had been a year of transition for its digital business after investing heavily in marketing its sportsbook, casino and games offer. Ladbrokes has vowed to turnaround its poker business after revenues slid by a quarter to £14.2m in the face of a tough market.

Chief executive Richard Glynn told investors: “We are continuing to make progress with our plans to reinvigorate Ladbrokes.”

Numis Securities analyst Ivor Jones said the results were in line with expectations.

He added: “Gaming machines are clearly performing very well and may deliver useful upside in 2012 as their revenue potential is optimised. And it is encouraging to see increased investment in new store development.”

Greg Johnson, an analyst at Shore Capital, said: “With Ladbrokes yet to demonstrate it has reinvigorated its online operation and evidence unlikely until the second-half, we believe investors should switch into the stock that continues to see strong momentum, William Hill.”

Ladbrokes pulled out of talks with 888 and Sportingbet as differences over valuation and regulatory hurdles proved insurmountable.

Glynn declined to rule out another approach for an online rival but said the focus was on organic growth.

Shares closed down 1.3p at 145.9p, giving the group a market capitalisation of about £1.3bn.

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