Further expansion in the Irish market not ruled out by British bookmaker

BRITISH bookmaker Ladbrokes hasn’t ruled out the prospect of further expansion in the Irish market, with the group’s new management happy with its under-performing operations here.

The company — number two, behind Paddy Power, in the Irish betting and gaming sector — is undertaking a detailed review of its entire operations (which spread across Britain, Ireland, Belgium and Spain) aimed at improving its financial and operational performance.

Last year saw Ladbrokes’ group pre-tax profits slip by over £70 million (€85.7m) to £191.3m (€234.3m); with gross win and operating profit levels for its Irish division — which accounts for roughly 8% of group revenue — also falling.

A source close to the company said that the new review is more to do with new group chief executive Richard Glynn (who joined the company in April) sizing up the business’ growth prospects rather than assessing the need for cuts.

They added that although trading conditions in the Irish market have proven tough, management remains committed to its operations here, feeling that Ladbrokes Ireland is well run and has its costs well under control.

Although the company closed 10 under-performing and non-profitable shops here last year, it actually opened nine. It currently has a total of 207 outlets in the Republic and another 78 outlets serving the market in the North.

“Overall, the strategy isn’t broken. In Ireland, the company will aim to continue to do what it has been doing all along,” the source added.

With regard to the potential for future expansion in Ireland, a Ladbrokes spokesperson said that the company has no limit to how many shops it would view as being sufficient for its retail portfolio. However, while no acquisitions are planned, topping up its store count hasn’t been ruled out.

Mr Glynn’s first bit of business after taking over at Ladbrokes was to sell off the company’s loss-making Italian business to local gaming company Cogetech for €5.25m in April. Its 82-shop retail business in Italy lost £9.9m last year.