UK gambling operator Ladbrokes published what may be its last quarterly report before merging its operations with Coral. Selling a little more than 350 high street shops to rivals Betfred and Stan James, the two major bookmakers cleared the last major obstacle that prevented them from completing a £2.3-billion deal, a move that would add a new powerhouse to the UK and the global gambling landscape.
According to the figures reported, group net revenue for the three months ended September 30, 2016 increased 12.1% year-on-year. The reviewed period has been the fourth consecutive quarter of net revenue growth, Ladbrokes said in its report.
UK Retail net revenue was up 1.9% year-on-year. Net revenue from gaming machines increased 4% as compared to the same period of the previous year. Ladbrokes launched multi-channel offering across its UK retail network in 2015. Since being rolled out, the offering has delivered more than 120,000 actives. Revenue from multi-channel gambling customers accounted for 11% of the overall sportsbook revenue generated during the three months ended September 30, 2016.
Ladbrokes’ Digital division showed particularly strong performance during the period in review. Revenue from online gambling operations increased 48.2% year-on-year. Sports betting offering generated a 47.9% net revenue growth. Stakes were up 26.2% and the number of active customers was up 35.6%. Mobile could be defined as the main growth driver for the period. Mobile staking was up 31.6% year-on-year and accounted for 78.9% of the overall staking figure reported.
Revenue from online gaming operations rose 23.7% year-on-year. This year’s third quarter was the eighth such period of online gaming net revenue growth. Net revenue from Ladbrokes Australia was up 89.6% during the three months ended September 30, 2016.
European Retail was the third division Ladbrokes posted figures about in its quarterly report. Revenue from retail operations around Europe rose 11.3% as compared to what was generated during the same quarter of the previous year.
Commenting on the gambling operator’s quarterly report, CEO Jim Mullen said that their strategy to focus on appealing to the recreational gambling customer has been delivering excellent results across the company’s divisions. Mr. Mullen further noted that the figures reported for the third quarter were in line with expectations.
Having sold 359 betting shops to Betfred and Stan James, Ladbrokes and Coral are now awaiting a green light from UK’s Competition and Markets Authority to complete their merger. The deal is expected to be closed by the end of October.
