Recent news suggests that Ladbrokes plc, parent of Ladbrokes Bingo and Casino has dipped a bit behind in the betting world due to their lack of progress in expanding on their online operations; this has further been reinforced by the recent collapse of their attempted takeover of Sportsbet.
The takeover of Sportsbet was abandoned after concerns were raised regarding regulatory legislation and this collapse has given Glynn yet another headache to deal with. Reports indicate that Ladbrokes position at the forefront of UK gambling is floundering, as they are overtaken by several rivals who are surging ahead in the online market. Many of these companies have committed to joint ventures, acquisitions and mergers; whereas Ladbrokes attempts at adding some new wood to the fire by bolstering their online portfolio, have unfortunately all failed.
With the presentation of the last quarter’s figures, Glynn has aimed to direct potential investor’s attention back towards his so-called “Plan A”. Plan A is an initiative through which Glynn is hoping to grow Ladbrokes naturally with the help of fifty million pounds investment.
The statistics make interesting reading and show that for the second financial quarter (June-September) net revenue was actually up by 2.5% on last year’s equivalent period but actual operating profit fell by 2.7%.
Despite this, Glynn believes that online gambling is making a difference and Ladbrokes’ drive to get more involved in this sector of the market had caused the total number of customers to increase by 11%, which the chief executive definitely sees as a positive.
Further examination of the figures shows that Ladbrokes’ betting shops net revenues were up 2% mainly due to an increase in takings from its betting terminals (a 20.4% rise on the previous year). Betting terminals are shown to be taking £30 more a week per terminal this year than in the third quarter of 2010. This growth in the usage of betting terminals is countered by the decrease in amounts staked over the counter as this amount actually fell by 3.5%, with net revenues in relation to over the counter transactions being down by 8.3%.
When talking about the location of their online customers, Glynn asserted that between 70 and 75% were from the UK but Glynn believes Ladbrokes can do better and that over the past few years they haven’t been performing as well as they could or should. Ladbrokes have a presence in Ireland, Spain and Belgium as well as a fully licensed facility in China.
Glynn is planning Ladbrokes’ expansion on a ‘case-by-case basis’ and believes that the online proportion of their customers will come from further afield across Europe as well as the UK.
Ladbrokes have added value to their online operations by including new features such as the Live Casino, mobile betting, exciting new and big name games to play at Ladbrokes Bingo as well as Fixed odds and Spread betting.
Shares in Ladbrokes have risen by 3.6%.