UK-based bookmaker Ladbrokes has confirmed revenues at its 2,000 shop estate were up nine per cent in the first three months of 2012, boosted by a 22 per cent rise in machine revenues and high demand for over-the-counter bets.
Operating profits rose 3.9 per cent to £50.4m as its gross win margin was higher than normal, helped by more punters losing at Cheltenham races.
Ivor Jones, an analyst at Numis Securities, commented that the nine per cent growth in UK retail net revenues was a "a good result" given the rise in the number of race meets cancelled by bad weather. But he believes revenues growth will start to slow as Ladbrokes comes up against strong figures from the previous year when it introduced new machines.
On the digital side of the business, Ladbrokes saw growth of 5.9 per cent but profits were down as a result of its two-year £50m investment programme to help it catch up with online rivals. The firm has pulled out of talks to buy online 888 and Sportingbet in recent months and has recently vowed to turn around its struggling poker division.
Chief executive Richard Glynn said the investment was starting to pay off, with the UK online sportsbook up 22 per cent, and remained confident the business would see profits growth in the second half of 2012.
Shares rose five per cent after the update and there was strong growth in the number of people signing up to Ladbrokes website, while bets placed from mobile phones accounted for 20 per cent of its sportsbook and it was the market leader in people betting in-play on football matches.
But other parts of the online business continued to struggle, with net revenues at its poker business suffering a 27 per cent decline and casino revenues five per cent lower.
