Ladbrokes looks a good bet as profits surge 20% ahead

Ladbrokes yesterday posted a 20 per cent jump in full-year profits as the UK's biggest bookmaker overcame a 7 per cent fall in bets staked at its shop counters.

But the group gave no further details about its interest in a potential takeover bid for online poker, casino and sports betting firm 888.

Ladbrokes, which has 2,100 outlets in the UK, benefited from online demand for "in-play" wagers and the continued roll-out of new gaming machines at its UK high street retail division.

Across the group, profits excluding the impact of high-roller betting showed a 20 per cent increase to 202.3 million in the year to 31 December.

Ladbrokes said the high street business was hit by challenging economic conditions and the loss of a significant number of horse races due to the weather.

The amount of over-the-counter bets staked by customers fell 7 per cent to 2.5 billion but was offset by a 4 per cent rise in machine bets to 9.2bn.

The gross win - the amount left by losing punters - rose by 1.4 per cent to 719.8m and, with Ladbrokes reducing overheads by 3.7m, the company improved retail operating profits by 11 per cent to 149.1m. During the year, Ladbrokes opened 40 shops, closed 30 and carried out a further 102 shop refurbishments. It plans to open a further 50 shops this year with 20 outlets scheduled for closure.

In digital, Ladbrokes grew profits by 36 per cent to 62.7m after the World Cup boosted player numbers and produced good margins for the firm. Revenues from online sports betting grew 16.9 per cent to 65.1m, driven by a 19 per cent rise in pre-event turnover and 11.2 per cent growth for in-play betting.

Chief executive Richard Glynn said the group was in good shape. He added: "We have laid solid foundations in 2010 upon which to build.

"We have set out our strategic goals and we have a clear set of priorities on which to focus."