Ladbrokes Ireland revenues rise 4%

The Irish division of UK betting services group Ladbrokes-Coral grew net revenue by 4% - to £19.8m (€21.5m) – in the first half of this year.

The group operates 141 shops in Ireland and said its Ladbrokes Ireland business – which went through the examinership process two years ago – reduced operating costs by 9% in the six months to the end of June, resulting in operating profit rising by 14%.

On a group-wide basis, Ladbrokes-Coral – formed through last year’s $3.4bn merger between the two - reported a 7% rise in first-half operating profit, driven by strong trading online.

Profit was up 7% at £158.8m. Group revenue was 1% ahead at £1.19bn.

Sources said last week that online gambling company GVC had recently discussed a takeover of the group but talks ended without a deal.

Britain’s gambling sector has been transformed by a wave of deals as companies try to bulk up so that they can absorb the rising costs of stricter regulation and higher taxation.

Ladbrokes has been trying to strengthen its online gambling offering as a possible crackdown by the UK government on betting terminals in high street shops threatens to hit its retail operations.

Online revenue, a key focus area for the company, rose 17%, to £374.5m, in the first half with big increases in Britain, Italy, and Australia.

Revenue from retail operations in the UK fell 6%, with a 7% decline in comparable over-the-counter staking.

Ladbrokes-Coral trades from over 3,500 shops across England, Wales and Scotland under the Ladbrokes and Coral brands.

Group chief executive Jim Mullen said the business continues to make good operational and financial progress and management is “looking forward to the second half with confidence”.

- additional reporting Reuters