Ladbrokes reports ‘flat’ performance in Ireland

BRITISH bookmaker Ladbrokes has reported significant year-on-year gains in third-quarter operating profit and revenue, but has said the performance in its Irish division has remained flat.

The three-month period to the end of September saw a 128% like-for-like rise in operating profit, to over £51 million (€58.15m), and a 12% increase in group revenue.

Headline performance was mainly boosted by a good showing during last summer’s World Cup in South Africa.

However, the period in question saw a relatively stable performance from Ladbrokes’ Irish division – which comprises nearly 300 outlets on the island as a whole (207 of which are situated in the Republic).

Here, the company – which is second, in terms of market share, to Paddy Power – saw a 9% year-on-year reduction in over-the-counter amounts staked by punters; which reflected “the continued weakness in the economy“, according to management.

Overall net revenue at Ladbrokes Ireland was flat, during the quarter under review, although there was a 13% year-on-year improvement in gross win margin.

Ladbrokes new chief executive, Richard Glynn, who joined the group back in April, said that the group performance, for the third quarter, suggested that the business is on track to meet full-year expectations, although “much remains to be done”.

Despite a challenging year or so for the company’s Irish division, management remains committed to Ireland and is not ruling out further expansion here.

The company – which recently sold off its Italian-based business, leaving it with its core British and Ireland and continental European (Spanish/Belgian) interests – has aggressively expanded, through acquisition, in Ireland over the past few years.