Internet betting delays dent Ladbrokes

By JAMIE GRIERSON AND PETER RANSCOMBE
Published on 02/08/2012 09:28

Bookmaker Ladbrokes today revealed that a series of problems at its online business had caused the division’s profits to drop by 50 per cent.

Product director Richard Ames, who was responsible for IT and trading, stepped down this week in a move reportedly linked to the botched digital strategy that has left it trailing big rival William Hill.

The UK’s second-biggest bookmaker saw operating profits at the digital arm slide to £15 million from £29.7m in the six months to 30 June as it failed to offer new products due to delays in technology.

The wider group, which has 2,150 shops in the UK, saw operating profits rise 11 per cent to £106.9m and revenues improve 8 per cent to £529m in the period, boosted by strong performances from the Grand National and Cheltenham horse racing festival.

Greg Johnson, an analyst at Shore Capital, said: “We retain our ‘hold’ recommendation despite the decent results, highlighting the uncertainty around the online turnaround, whilst we continue our preference for William Hill given the strong profit momentum from both retail and online.”