Ladbrokes to further rationalise businesses

British betting company Ladbrokes has announced more rationalisation plans, aimed at reducing costs further and allowing for a greater digital-based investment drive.

The move will see a streamlining of the group’s international business which mainly covers its operations in Spain, Australia and Belgium. It follows two significant updates for the group’s business in Britain and Ireland, this week.

First, it confirmed it has entered merger talks with UK rival Gala Coral to create a potential $5bn industry giant. Second, that the High Court-appointed examiner overseeing the future of the Irish operations of Ladbrokes, Ken Fennell of Deloitte’s — is expected to name a preferred bidder for the group’s Irish division in the coming days.

Boyle Sports has been linked to a €25m takeover bid for the Ladbrokes Ireland business. The new plan will see nine jobs go in the company’s centrally-based international team.

“Our international businesses each have strong management teams and don’t require extensive support from a centrally-based international team,” said CEO Jim Mullen, who said the job cuts will result in necessary cost savings.

“This move will reduce costs and bring resulting savings will enable us to support the increased investment in our digital business, which is essential to the future of the group,” he said.

One of the main reasons for a merger with Coral would be to gain a foothold of the online market.

Mr Mullen’s remit was to significantly increase the group’s digital services element.