Ladbrokes on track after football boost

Bookmaker Ladbrokes today reported a bounce back in quarterly profits after it benefited from a stronger start to the English football season.

Operating profits rose from last year’s £22.4m (€25.6m) to £51.1m (€58.4m) in the three months to September 30, following a 15% improvement in the amount of money left by losing UK shop customers over the period.

Last year’s trading performance was impacted by a winning start to the football season by Chelsea and Manchester United and the low incidence of draws – the bookies’ favourite result.

With Ladbrokes also benefiting from a profitable end to the World Cup and a stronger performance from its gaming machines, the company said its UK shop revenues for the three month period were up by 12%.

This was despite a 5% decline in the amount of money staked by customers in the company’s estate of more than 2,000 shops.

In Ireland, the country’s economic difficulties were blamed for a 9% decline in the amount of money staked by over-the-counter customers.

Overall, chief executive Richard Glynn said the third quarter trading performance had boosted expectations that Ladbrokes will meet its targets for the full year.

He added: “Ladbrokes has a great brand and a strengthened management team determined to drive operational improvements going forward.”

Shares opened more than 4% higher following today’s update.