Ladbrokes sees Q3 net revenue grow by 1.7%

Third-quarter net revenue at Ladbrokes’ Irish operations grew by 1.7% year-on-year when measured on a constant currency basis.

In its latest quarterly trading update, published yesterday, the British betting and gaming group said that while the amounts staked by punters were down, the Irish operation saw a “slightly stronger” gross win margin (basically, the amount the company makes on losing bets) during the three months from the beginning of July to the end of September.

On an unadjusted basis, however, Irish revenues were down by 5.4% for the quarter when measured against the corresponding period last year.

Ladbrokes’ Irish operations cover 214 shops in the Republic and a further 79 in the North. Earlier this year, the group reported a 76% year-on-year boost to first-half operating profits for its Irish business and a near 5% rise in net revenue.

Group net revenue for the quarter was up by 3.9%, year-on-year, with operating profit amounting to just over £49m. Revenues from Ladbrokes’ core British retail division — its main revenue stream — grew by 5.4%, with over-the-counter net revenue growth of 0.6% recorded.

While Ladbrokes has been hit in recent times by delays in its planned technology upgrades, the group’s third-quarter digital revenues showed a 6.1% annualised increase.

Chief executive Richard Glynn said that the company is “delivering against a clear programme” to complete the roll-out of its new digital sportsbook by the end of the first quarter of next year.

“Enhancements in trading are leading to early signs of an improvement in the quality of turnover,” he said, adding that despite the uncertain economic outlook, management remains confident of meeting its current full-year expectations.

Elsewhere, yesterday’s results showed a near 6% annualised fall in telephone revenue; but a switch from a £700,000 loss to a £6.9m profit from so called ‘high roller’ punters. Net revenue was up 8.8% in Belgium, but it reached break-even levels in Spain.