Ladbrokes takes Covid hit

British bookmaker suffered a near 40% revenue drop in its Irish-led European shop network last year

Covid disruptions resulted in shop closures and restricted sporting activity.

British bookmaker Ladbrokes suffered a near 40% revenue drop in its Irish-led European shop network last year as Covid disruptions resulted in shop closures and restricted sporting activity.

The European retail division only includes shops outside of the UK and is dominated by the company’s betting shop network in Ireland. When the UK is included, retail revenues rose 1% last year.

Ladbrokes owner Entain said its overall net gaming revenue jumped 27% last year. The group – formerly known as GVC – also owns the likes of Betdaq, Bwin, Coral, Party Poker, Gala Bingo and Foxy Bingo. It also has a presence in the US through a joint venture with MGM Resorts.

However, Entain's shares nosedived this week after MGM Resorts pulled the plug on a potential £8bn (€9bn) takeover for the entire UK betting and gaming group. Entain said the offer undervalued its business and MGM said it wouldn't increase the price.

"While we are surprised by the outcome of the MGM process, we also view Entain’s stand-alone prospects as superior to those of any of the proposed enlarged MGM entity. The key pillars of that stand-alone thesis are continued earnings momentum and a new CEO intent on implementing the group’s recently refreshed global growth strategy," said Davy's Michael Mitchell.