Revenue in Q3 up 14% for bookie

REVENUES at the Irish operations of gaming group, Ladbrokes, grew by just under 14% on a year-on-year basis in the third quarter.

The British bookmaker — whose profile in Ireland is second only to Paddy Power — yesterday reported group net revenue growth of 2.5% for the third quarter.

In Ireland, where Ladbrokes operates nearly 300 stores (216 in the Republic), the company said that over-the-counter (OTC) amounts staked in the shops grew by 6.6% compared to the same three-month period last year and that a strong OTC gross win margin of 14% (which was up by 1% year-on-year) drove a 13.9% increase in total revenues.

In its core British division, net revenue was up by 2% during the period, although the actual figure was not disclosed. Third-quarter group operating profit, meanwhile, was down 2.7% year-on-year, at £49.7 million (€57m).

The figures beat market expectations.

Despite the ongoing uncertain economic climate, Ladbrokes’s management say they remain upbeat about the remainder of the year.

“Looking forward, we expect operational initiatives — already under way — to drive further momentum,” said group chief executive, Richard Glynn.

“The economic climate in the UK remains challenging and, whilst we expect this to continue, we’re confident in our strategy and remain in line with the board’s expectations for 2011.”

Ladbrokes also saw growth in its mainland European (Belgium and Spain) operations and group net debt was reduced by £16.5m to £432.9m during the quarter.