Ladbrokes announced a 13% rise in operating profits for the first quarter of 2008 to the end of April this morning, excluding profits from its high rollers. The company said profit from its high rollers had been £40m over the period, although their activity levels had recently fallen to minimum levels and it did not include it in its overall figures because of the volatility of that part of the business.

Ladbrokes’ eGaming net revenue grew 24% during the period, with sign ups up 27% and unique active customers increasing 18%. Poker net revenue fell 2% due to the highly competitive market conditions at the moment, but sportsbook, casino and game all experienced particularly strong activity. The casino and bingo products are showing good results following Lasbrokes’ TV advertising campaigns and the company expects full year 2008 profitability to be in line with 2007. During 2008, Ladbrokes plans to increase the marketing levels of its online gaming products and will focus on growing net revenues and customer acquisitions.

At an international level, Ladbrokes expects to open up to 70 outlets in Spain through its Sportium joint venture with Cirsa and on 4 February purchased eight shops in Italy for a cash consideration of £14.2m and deferred settlement of £3.2m.

Chief executive Chris Bell said: “Gross win grew strongly during the period and, whilst our business has seen no evidence yet of a consumer downturn, we remain mindful of general economic conditions. The group remains focused on enhancing shareholder value by growing its established retail businesses, developing the new opportunities in Italy and Spain and driving the top line in eGaming through marketing investment in customer acquisitions.”

Retail gross win in the UK rose 11% and over-the-counter gross win increased 4%, the company said it had benefited from a strong turnover in football betting. Horse racing betting declined slightly while machine gross win rose 26%, benefiting from the roll-out of new dual screen machines at the end of March 2007, new gaming content and extended evening opening hours.

The retail cost of the UK outlets rose 12%, a result of the longer opening hours and the additional cost of setting up Turf TV across the company’s estate.
(Source: eGaming Review)