Ladbrokes continues to struggle on with digital

By GARETH MACKIE
Published on 31/07/2012 00:00

LADBROKES yesterday said that the director in charge of its IT strategy had been relieved of his duties as the bookmaker prepares to unveil a slump in profits at its digital division.

The company said Richard Ames, who joined in 2005 as retail commercial director and was promoted to the board in 2009, “has ceased to perform his executive duties with immediate effect”.

It declined to comment on the reasons behind the move but said Ames would remain on the board for the time being.

It will update the City on any management changes when it reports its first-half results on Thursday.

Shares in the company closed down 6.7p, or 4.1 per cent, at 155.8p yesterday.

Ladbrokes, Britain’s second-biggest bookmaker, has said it will invest £50 million to improve the performance of its internet business, which has lagged that of rival William Hill.

However, last month it warned that delays in delivering technology projects would see profits from its digital arm fall to around half the £31m it delivered in the first half of last year.

Ames’s departure comes a little over a year after Gary McIlraith left his role as managing director of digital channels,
international and strategy.

Michael Campbell, an analyst at Daniel Stewart, said: “The digital business is clearly not performing. We need to see a clear strategy from the board with regards to their digital business.”

Chief executive recently Richard Glynn sought to reassure investors that a better performance at its 2,000-strong shop estate had kept it on course to meet City hopes for the first half.

Analysts expect the company, which last year pulled out of talks to buy online gambling businesses 888 Holdings and Sportingbet, to post half-year profits of £103.4m, up from the £97.6m reported a year earlier.