Ladbrokes profits up slightly

Bookmaker Ladbrokes today said a good performance by its UK shops and the popularity of internet gaming helped profits edge ahead in 2008.

The group, which has more than 2,500 betting shops, posted operating profits of £243.8m (€276.4m) for the period, an increase of 0.9% on a year earlier.

It said the new year had got off to a challenging start because of "unusually high levels" of UK and Irish horserace abandonments - 58, against 33 a year ago. Cancellations have included a number of high-profile Saturday meetings.

More than 200 shops were also unable to open during the recent severe weather, but Ladbrokes said the amount left by losing punters - its gross win - still increased by 1% in the first six weeks of the year.

In the UK retail business, gross win was up 4.7% during 2008 to £773.9m (€877m), with the amounts staked increasing 9.4%. The improvement stemmed from machines rather than over-the-counter betting, which saw gross win fall 0.6%.

The company's egaming business increased revenues by 20%, reflecting marketing investment in ladbrokescasino.com and ladbrokesbingo.com.

High-roller customers generated gross win of £98.3m (€111.4m) for the company in 2008, although this was lower than £249.6m (€283m) seen a year earlier.

The betting by wealthy customers is treated as an exceptional item by Ladbrokes and did not feature in its operating profit figure of £243.8m (€276.4m).

Including high-rollers, pre-tax profits were £258.7m (€293.3m) against £353m (€400m) a year earlier.

Today's results were well received in the City as Ladbrokes offered no sign that it was feeling the pressure from the consumer spending slowdown.

With economic conditions set to be challenging throughout 2009, the company told investors it would remain vigilant for signs of any impact.