Ladbrokes, one of the world's leading gaming companies, has announced its unaudited interim results for the previous four months showing a ten percent increase in group profits excluding adjustments for advertising costs.
For the four months before October 31, Ladbrokes revealed that its group gross win excluding high rollers increased by twelve percent while profits rose by three percent after adjusting for the $5.5 million spent in advertising over the previous year.
The Harrow-based firm reported profits from high rollers for the period of $25.2 million following the collection of customer receivables previously provided for. In addition, machine gross win increased by 14 percent at the firm’s UK retail outlets while average weekly gross win per gaming machine was $1,006 compared to $871 for the same period last year.
However, Ladbrokes reported that over-the-counter gross win was down by two percent after free bets due to poor results in the last two weeks of the period. In addition, while the firm’s gross win margin was up over the period at its UK shops, the amount staked fell due to lower greyhound activity due primarily to the introduction of Turf TV. The English firm stated that costs remain tightly managed with expectations for the full year within its eight percent guidance.
'Despite the generally challenging economic conditions, group profit grew overall,” said Chris Bell, Chief Executive Officer for Ladbrokes.
“UK retail gross win increased by five percent while eGaming has continued to successfully follow its strategy of investing in new customer acquisition and grew net revenue by 22 percent.'
'The group has benefitted from $275 million of new bank facilities signed during the year and is trading comfortably within its banking covenants.
“Although a run of poor football and horserace results at the end of the period has affected performance, the group remains within the market expectation range for 2008.'