Ladbrokes sees revenue recovery with positive Q3 2014

Ladbrokes Plc posted its first positive interim results, for Q3 2014 following eight rounds of consecutive losses recorded in previous interim results. Ladbrokes senior management announced that after posting its positive Q3 2014 results (three month period ending 30 September), it was now on track to meet its financial targets for 2014.

Ladbrokes posted Group operating profits of £33 million (up 94% on Q3 2013: £17 million), the figures were supported by positive performances generated from the operators digital gaming (+45.9%) and sports betting divisions (+58.2%).

The operator stated that during the period it had managed to secure increased wagering (+21.6%) and improved margins on its sports betting product (8.9%). The product vertical had benefited from a strong World Cup in H2, and a favourable set of results compared to Q3 2013.

Ladbrokes reversed recent revenue declines from its digital gaming division, posting the first  increase for six quarters, and net revenue growing sequentially by 12% on Q2 2014. Casino revenue was down 2.6% year on year, improving on H1 performance and sequentially up by 6.6% on Q2. Games revenue grew 30.6% and sequentially by 20.8%

It improved digital performance, had been supported by a solid numbers generated by its retail betting division, which saw new revenues improve 6%. During the period the Ladbrokes retail had seen  Over The Counter ‘OTC’ gross win margin improve 17%.

Richard Glynn, Chief Executive, commented on the Ladbrokes Interim results:

“Ladbrokes is on track. The major operational improvements completed in H1 are now delivering growth. Our performancein the World Cup and throughout Q3 demonstrate that we are competing successfully and winning customers.

In Digital, our sportsbetting offer continues to perform well with net revenue up over 50% driven by mobile. In Gaming we are encouraged to see a return to growth. In UK Retail, our focus on football continues to deliver good growth. Our gaming machines performed ahead of our expectations while we have, simultaneously, enhanced standards in social responsibility.

We entered the final part of 2014 with a competitive and attractive offer. We have achieved much operationally in 2014, with further opportunities to drive revenue in 2015 and beyond. Q4 has started in line with our plans and, with usual sporting results, we will deliver full year results in line with our expectations.”

Ladbrokes Q3 2014 Performance Overview