UK-based gambling operator Ladbrokes plc posted today an update about its financial performance during the three-month period ended March 31, 2016. Group net revenue increased 10.6% in the first quarter of the year.
The company saw UK retail net revenue go up 4.1% year-on-year. OTC net revenue rose 8% year-on-year. Staking decreased 1.3% as compared to the same period a year ago. OTC gross margin was up 17.5%.
Ladbrokes said that the amounts of SSBT stakes grew 172.5% year-on-year, representing the company’s first full quarter with its recently enlarged SSBT offering. Machines net revenue increased 1.1% and the growth was attributed to the company’s continued focus on the introduction and promotion of lower-staking slot titles and B3 content.
Ladbrokes noted in its trading update that net revenue from its digital operations increased 38.4%, reflecting a strong growth in both sportsbook and gaming. Revenue from sportsbook offering was up 59% and actives increased 27.8%. Stakes were up 35.2% for the period. Mobile staking also registered a stable growth of 57.6% and accounted for 77.1% of overall sportsbook staking.
Revenue from online gaming operations rose 27.3% year-on-year. As for Ladbrokes’ Australian business, net revenue grew 38.4%, staking was up 51.5%, and actives grew 86.1% year-on-year.
European retail revenue increased 6.4% as compared to the figures for the first quarter of 2015. In Ireland, OTC staking decreased 7.9% due to the fact that fewer shops operated in the country following last year’s Examinership process. In Belgium, OTC staking was up 21.2% due to the substantial investment in virtual product offering and SSBTs.
Commenting on the company’s performance, CEO Jim Mullen said in a statement that Ladbrokes has had an extremely encouraging beginning of the new year, with results in the first few weeks of the quarter ended March 31, 2016 being in its favor and customer metrics keeping to be strong. The official further noted that they will remain committed to implementing the growth strategy he introduced last year and on achieving a continued growth in the number of recreational gambling customers.
Mr. Mullen added that the operator is currently ahead of plans regarding key player metrics due to the fact that it has benefited from favorable results before this year’s edition of the Cheltenham festival, which he described as the worst “in living memory.” The metrics are expected to normalize within the months to come and Ladbrokes is likely to deliver full-year results in line with board’s expectations.
