Issuing a Q1 2016 trading update (period ending 31 March), Ladbrokes Plc governance praised its ongoing strategic plan which it stated was garnering positive results and encouraging customer metrics.
Ladbrokes detailed positive KPI metrics for both its retail and digital betting assets, despite suffering the “worst Cheltenham Festival in living memory”.
The FTSE-listed operator under CEO Jim Mullen has implemented a ‘multi-channel recreational customer strategy’ recorded a 10% year-on-year group revenue uplift, detailing growth in customer activity within all core betting divisions.
Highlighting drivers, Ladbrokes governance noted the positive performance of its online sports betting division which generated a 59% net revenue uplift driven by a 28% increase in active players.
Ladbrokes Trading Update – Q1 2016
Ladbrokes governance was pleased to announce the continued momentum of its online sportsbook which has now registered nine consecutive quarters of wagering growth.
Further implementing its multi-channel strategy, Ladbrokes was able to implement the first phase of its ‘UK Retail Capital Expenditure Programme’, which saw 73 shops refurbished.
Despite the negative impact of Cheltenham 2016 on its opening results, Ladbrokes stated that it would maintain a disciplined and consistent approach to trading and pricing on key sports as the operator prepares for Euro 2016 activity with new marketing campaigns.
Jim Mullen, Ladbrokes Chief Executive, commented on 2016 opening performance:
“We have had an encouraging start to the year. Results throughout the first few weeks were largely in our favour and our customer metrics have continued to be strong. In Retail, the favourable margin trends inevitably began to take their toll on customers’ staking levels. We see plenty of evidence that indicates our plan is working but we are still early in our turnaround strategy and our priority remains on continued growth in our recreational customer base.
“Our focus remains on best in class customer service, superior quality of product and maximising the multi-channel potential of our business. We continue to be pleased by the reaction to our increased marketing, our products, and multi-channel proposition. We have enjoyed record weeks across key metrics including actives and staking in digital, SSBTs and multi-channel sign ups in retail.
“We will continue to deliver the strategy I laid out last summer to engage the recreational customer and reinforce our status as the nation’s favourite bookmaker. At Cheltenham, we were reminded of the intense competition with offers and pricing at levels which, in our view, abandoned bookmaking principles. We competed hard but refused to pursue unsustainable strategies and our stance remains that we will compete where we know we can get the right returns from the right customers.