Telephone bets rescue Ladbrokes
Nov 16 2007 by Peter McCusker, The Journal
HIGH-spending telephone punters came to the rescue of Ladbrokes yesterday after results from its betting shop operation failed to meet targets.
Ladbrokes said profits for the four months to October 31 increased by 84%, but this reversed to a 12% decline without business from telephone “high-rollers” and before the cost of a recent television advertising campaign.
The company said the below par performance from its retail business partly reflected poor summer weather after a high number of race cancellations in July and August.
Margins on football bets also took a hit because of unfavourable results.
Ladbrokes’ first attempt at television advertising – costing £4.7m – features former footballers Ian Wright, Ally McCoist, Lee Dixon and Chris Kamara.
The campaign may have helped trading in November, as Ladbrokes reported double-digit growth in the money spent by punters at the UK retail business.
The figure was 4% higher in the four months to the end of October, including a 25% improvement in revenues from gaming machines. The Gambling Act, which came into force on September 1, has enabled Ladbrokes to replace its fixed odds betting terminals with those offering roulette and jackpot games.
Ladbrokes shares fell 7% as investors worried about prospects for the betting industry. William Hill shares were also 4% lower.
