Net revenue fell by 16.6% at the Irish division of British betting giant Ladbrokes in the third quarter of the year.
The annualised drop in sales, coupled with a near 1% decline in amounts of money staked by punters, was a direct result of the reduction in the company’s branch network here since its emergence from examinership in August.
Ladbrokes’ store network in the Republic dropped by just over 50 to 144 outlets and staff numbers decreased by 90 after Ladbrokes Group emerged as the preferred survival solution, via a €13m investment plan, of the High Court-appointed examiner in early August.
Half year results for the group, published in August, already showed that while Ladbrokes Ireland’s operating profits, of £2.5m (€3.5m), had remained unchanged, revenues were down by 9.2% to £33.6m, with gross profit falling by nearly 10%, year-on-year, to £29.8m.
The group has also already stated that annual group profits are likely to be around £20m lighter, this year, due partly to examinership costs in the Republic and impairment costs relating to its UK and Northern Ireland businesses.
Yesterday, Ladbrokes reported group net revenue of £14.3m for the third quarter of the year, representing a 0.7% annualised fall. Its core divisions, of UK retail and digital, showed a 1% decline and a 6.4% gain, respectively.
Regarding Ireland, management said it is pleased to have completed the examinership process, while the performance of its smaller, “more sustainable” estate has been “in line with our expectations”.
“Activity in August and September in the Republic of Ireland on a like-for-like basis showed broadly stable gross win on higher, promotion-driven, staking activity,” management added.
“The performance is consistent with our objective of creating a sustainable business through the examinership process, where the reduction in workforce was achieved almost entirely through a voluntary redundancy programme.”
Meanwhile, group chief executive, Jim Mullen said that the overall third quarter peformance reflects “positive initial progress” for the business, while the proposed merger with Coral remains “on track”.
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