Digital delay odds on to hurt bookie

By SCOTT REID
Published on 29/07/2012 00:00

LADBROKES’ boss Richard Glynn will stress the importance of a £50 million investment in digital this week as the bookmaker recovers from England’s exit from Euro 2012.

The group’s shares have been under pressure after it revealed that delays to plans to revamp its long-awaited online gambling unit would likely see the division’s profits halve in the first six months of the year. It had a tough Euro 2012 tournament after England were knocked out in a penalty shoot-out with Italy.But Britain’s second-biggest bookmaker recently 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 are expecting Ladbrokes to post half-year profits, excluding high rollers, of £103.4 million on Thursday, which would still be up from the £97.6m reported a year earlier.

The shares have been hit by news of the online betting unit delay because the sector is one of the fastest growing areas of the industry. James Hollins, an analyst at Investec Securities, said the firm was lagging behind rival William Hill online, noting: “The perception of the group’s online division requires a material improvement in both investors’ and consumers’ minds.”

Chief executive Glynn has put faith in a two-year £50m investment in digital to return the operation to profits growth in 2013. His plans include expanding into additional territories such as Denmark and Spain and turning around the firm’s struggling poker division.