UK gambling operator Ladbrokes plc released its preliminary financial results for the year ended December 31, 2015. The company reported a 3.2% increase in annual revenue to £1.19 billion. In comparison, the amount of £1.15 billion was generated in the previous year.
Revenue from Ladbrokes’ UK Retail division amounted to £827.4 million, up 2% year-on-year. Operating profit was down 2.7% last year to £116.1 million. Proceeds from online gambling operations totaled £232 million, representing a 12.9% increase as compared to the figure reported for the twelve-month period ended December 31, 2014. Operating loss of £23.8 million was posted for the period.
The operator’s European Retail division generated a total of £119.8 million last year, down 1.9% year-on-year. Operating profit from that same division was up 11.5% to reach £14.5 million in 2015. Core Telephone Betting operations contributed a total of £5.5 million to the overall revenue for the past year, down 46.1%. The division generated operating loss of £24 million.
Ladbrokes’ overall operating profit was down considerably last year. It decreased 35.7% to £80.6 million. The gambling operator also reported its first annual loss in a decade after facing costs related to the closure of betting shops, new gambling taxes, investment in its online business, and the implementation of its £2.3-billion mega-merger with rival Coral Group. Ladbrokes reported pre-tax loss of £43.2 million compared to profit of £37.7 million for 2014.
Commenting on his company’s financial performance in 2015, CEO Jim Mullen said that he is pleased to report “a good start to the delivery” of the aggressive growth strategy he introduced in July 2015. Last summer, Ladbrokes launched a three-year investment program in a bid to build a UK Retail, Digital, and Australian recreational customer base by ensuring that the recreational gambling customer as well as sports betting are what the operator considers front and center to its activities.
Mr. Mullen pointed out that although the program is in its earliest stages, he can definitely report positive progress, with self-service betting terminals across the company’s UK-based betting shops delivering growth, football being up, and Retail delivering solid multi-channel growth. As for Digital operations, increased marketing initiatives resulted in more customers staking more at Ladbrokes’ online gambling website. Revenue from the operator’s online brand was up 25% last year and revenue from Australian operations was up 75%.
