UK-based gambling operator Ladbrokes today announced its financial results for the three-month period ended September 30, 2015. Overall net revenue dropped 0.7% as compared to the results posted for the same quarter a year ago.
Yet, excluding the gambling activity related to the 2014 FIFA World Cup, the company posted a 2% increase in its overall proceeds. Revenue from the company’s UK-based retail division was down 1% in the three months ended September 30. However, excluding the proceeds generated during the FIFA World Cup, revenue increased 1.1%.
Digital operations grew 6.4% during the period in revenue. Excluding the FIFA World Cup results, the figure was 10.5%. Revenue generated by sportsbook staking on Ladbrokes.com increased 34.1% year-on-year. The company’s mobile segment posted 69% higher quarterly revenue as compared to the figure reported for the same quarter a year ago. Digital operations in Australia registered a stable growth. Net revenue there increased 26.3% year-on-year.
European retail dropped 8.5% compared to the results posted for the same period a year ago. With FIFA World Cup excluded, revenue decreased 4.6%.
Ladbrokes also announced that group EBIT amounted to £14.3 million during the period in review, down 56.7% year-on-year. Yet, the company noted that the posted figure was in line with expectations. EBIT growth was impacted by the newly introduced Point of Consumption tax, the increased Machine Games Duty, and Ladbrokes’ decision to withdraw its services and products from unregulated online gambling markets.
Commenting on the reported results, Jim Mullen, Chief Executive Officer of Ladbrokes, said that those reflect the first 68 days since he introduced the company’s organic plan for aggressive investment in order to eventually grow its customer base across its UK retail, digital, and Australia-based divisions.
Mr. Mullen also noted that the figures represent a positive initial progress and increased staking activities across the operator’s online gambling operations as well as “improved staking trends” in the UK.
The executive further explained that their main goal now is to build on that initial success and that they will do their best to remain focused on that goal. Mr. Mullen also revealed that Ladbrokes’ proposed merger with rival gambling operator Gala Coral is on track and is awaiting regulatory approval. The company has raised a bank debt of £1.35 billion in order to finance the transaction.
