Ladbrokes:Online And Mobile Expansion
Ladbrokes is geared to increase its egaming profits in key segments this year by making use of online, mobile and international growth. Pre-tax profits for Ladbrokes increased by £4.5m in 2010 from £58.2m to £62.7m and its net gaming revenue increased by £8.7m from £160.7m to £169.4m.
In the UK retail still overshadows online in both revenue and profits. However, Glynn is eager to point out the company’s commitment to its non-retail and non-UK activities comprising 25% of the bookmaker’s activities. “Ladbrokes nowadays is sees as a retail-led business expanding abroad and online business,” he said. “We strive to be an e-enabled international betting and gaming internet casino and we have clearly defined goals in mind to accomplish this.”
Glynn is realistic when it comes to developing and expanding Ladbrokes’ online player presence. He indicated that 25% of Ladbrokes’ new digital players found Ladbrokes.com into their internet search-bar, whilst a further 30% made use of search engines. “We could only achieve this by brand awareness, this could only come via our retail presence,” he said.
We aim to expand our mobile operation the CEO said within the next year or so. Its contribution to “digital player transactions” increased from 3 to 9% over the course of 2010, and this year it increased by 15%. “In essence any mobile platform is a integral part both between online and retail,” explained Glynn, indicated Ladbrokes’ mobile app “Kick-off” – introduced in 2010 and it walked away with various silver ware at the Future Mobile Awards.
Ladbrokes is also actively marketing in-play betting and international development. The amount of in-play events presented by the bookmaker increased by 27% to 23,000 in 2010, bringing its total contribution to digital sportsbook proceeds to 42%, horse racing excluded. Net revenue for internet sportsbook came to £65.1m and total net revenue stands at £169.4m.
Digital operations for Ladbrokes saw a 36% profit growth to £62.7m, in spite of poker which dropped somewhat. Sportsbook profits increased by 16.9% to £65.1m; internet casino profits by 6.3% to £55.3m and bingo shot up to 11.4% to £13.7m. Unfortunately poker dropped by 20.7%. Player base saw an increase of 4.2%.
Glynn consented that unregulated revenues and profits were “an unconfident type of revenue.” ”Ladbrokes has a standing reputation and it has great potential for expansion into regulated markets,” he added.
An analyst for Peel Hunt, Nick Batram provided his insights. He said: “Current results have exceeded our wildest expectations aided by a improved margin performance across all divisions. Richard Glynn must have a more hard-line online approach and that the retail margin gap with William Hill narrows.”[addtoany]