Accelerated Growth sees Ladbrokes post H1 2016 profits of £25 million

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Publishing its H1 2016 results (period ending 30 June), Ladbrokes Plc governance has stated that its ongoing corporate strategy has seen it deliver an ‘accelerated multi-channel’ growth on all core metrics.

The FTSE-listed bookmaker would close H1 2016, recording group revenues of £661 million up +13% on corresponding H1 2015’s £585 million.

The revenue uplift would see the operator post an operating profit of £37.7 million, reversing its H1 2015 period losses of -£37 million.  Maintaining its strong start to 2016, Ladbrokes would record pre-tax profits of £25 million as the operator reverses 2015’s corresponding £50 million group losses.

Ladbrokes H1 2016 Performance Overview

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Breaking down the performance of its respective divisions’ during a period of high customer activity driven by Euro 2016, Ladbrokes governance would detail that is multi-channel strategy had delivered growth to both its retail and digital assets.

Aided by the full implementation of its BetStation product, Ladbrokes UK retail division would see a 10% gain in ‘over the counter’ (OTC) wagering with Ladbrokes governance further detailing that ‘recreational players’ were responding positively to its retail betting services.

Ladbrokes governance was pleased to announce its tenth consecutive quarter of year-on-year wagering  growth for its online sports betting product up 19% with player actives up a further 34%.

Overall total digital net revenue increased by 40.9% to £158 million (H1 2015: £112 million) as customers responded to our improved brand presence, product quality and stability, and the business benefitted from favourable sporting results.

Ladbrokes digital division would be supported by an increased investment in marketing, combined with improvements to its product quality focusing on user engagement and interaction.

Jim Mullen, Ladbrokes Chief Executive, commented on H1 2016 performance

“These strong numbers show customers are responding positively to the new strategy at a time when the sporting gods have generally been on our side and we’ve enjoyed some helpful bookmaker friendly results. This combination has helped boost profits in the first half of the year.

“These strong numbers show customers are responding positively to the new strategy at a time when the sporting gods have generally been on our side and we’ve enjoyed some helpful bookmaker friendly results. This combination has helped boost profits in the first half of the year.

“History would strongly dictate that such a run of results in our favour would see customer staking suffer, but encouragingly these numbers firmly buck that trend and combine strong staking and a good margin. However, 130 years of experience in sports betting has shown us that we will endure a run of customer friendly results and margins will normalise. Despite this assumption on results and our intention to continue investing in marketing, we have slightly increased our full year expectations.

“Encouragingly we have delivered a good performance across all the key customer metrics outlined in last year’s strategic plan and that gives us confidence that we are well placed to deliver against our stated 2017 targets. We have grown recreational customers, increased our football business, attracted more multi-channel customers and grown strongly in Australia. However, we are taking nothing for granted.

“We will continue to compete hard on pricing, product and customer services and maintain a relentless focus on meeting and exceeding customer expectations. With the merger on the horizon we recognise there is a lot of hard work still to come, but this is an exciting time for Ladbrokes and we approach the opportunities ahead with a strong sense of confidence.”

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