Ladbrokes profits hit by Cheltenham

BOOKMAKER Ladbrokes said profits were down by a third after punters enjoyed a successful Cheltenham Festival.

An unusually high number of horse race cancellations also affected the performance in the four months to April 30, although Ladbrokes said more normal trading patterns had returned in recent weeks, helped by a favourable outcome in the Grand National at Aintree last month.

Chief executive Chris Bell said predicting activity levels in the current climate was difficult, but he remained confident in Ladbrokes’ performance over the year. In a trading statement, Ladbrokes said its gross win – the amount left by losing punters – declined by 4% in its British retail division.

Including the impact of free bets, over-the-counter gross win reduced by 11% in the four months to April 30. However, this was offset by a 5% improvement in the average weekly gross win per gaming machine.

Revenues from telephone betting fell 54%, reflecting the impact of horse racing cancellations and poor results.

Meanwhile the high-roller business prompted Numis Securities to raise its full-year profits forecast by 9% to £198.4 million (€223.1m), although it warned there was a downside risk to estimates if current trading does not improve.

Investec Securities said the trading statement was disappointing in the context of more bullish updates from William Hill and Paddy Power.