The UK-based gaming operator Ladbrokes has been struggling to reach positive revenue results for the past few years. The third quarter of 2014, however, brings new hope to the company as it shows a 13% increase in revenue.
The chief executive officer of the company, Richard Glynn, was happy to announce the statistics of the interim report for the third quarter, stating Ladbrokes was on the right track and at the end of 2014, the revenue results would be as the company expected.
Ladbroke’s department supported by Playtech announced an impressive revenue increase of little over 45% for the past three months. This is due to the 2014 FIFA World Cup which boosted its revenue by 29%. The online betting statistics show an increase of more than 21%, with a 9% increase in the chances of winning.
The mobile betting department of Ladbrokes reported positive results as well – an 80% increase in active users per month plus 110% increase in betting done via mobile devices.
Impressive Revenue Results from Australia
The overall revenue from online wagering rose by 1.5% which is the first positive result for the last two years. The betting results of the new Ladbrokes business in Australia are the highest with an impressive betting revenue up by more than 40%, a 120% increase of active player count and overall revenue increase of 174%.
Half of the online revenue increase for Ladbrokes is thanks to its Australian operations. As to other online markets such as those of Spain and Belgium, Ladbrokes did not give any details but a statement saying the results were similar to the expectations.
The off-tracking wagering revenue also increased a bit over 6% with margins going above 2 points. The overall complement of Ladbrokes shops in the United Kingdom has decreased by 49 points reaching just over 2,200 at the end of the third quarter for this year. Additional closures “remain inevitable” as on the 1st of March, the Machine Games Duty – MGD, will be implemented for UK-based operators which will increase the duty of income earned from 20 to 25%.
The revenue reports from outside the United Kingdom show big discrepancies depending on the market. Belgium and Spain report a considerable increase in revenue; Ireland, however, barely managed to rise above the zero point, with a 1% increase.
High Rollers earnings increased by close to 50%, reporting an overall operating profit of $6.44 million, a raise of $1.77 compared to the third quarter of 2013.
Despite the overall increase in revenue from all markets where Ladbrokes operates, it ended last week with 121p per share, a decrease of 6%.
Experts state that this is due to the lack of trust from investors, who state that the positive results are mostly due to the recent sporting events and not successful managerial decisions. The Numis analysts predict that due to the 15% POC tax, Ladbrokes will undergo “an almost inevitable profit decline in 2015.”
