LADBROKES I-GAMING PROFITS GROW BY 13.5 PERCENT
23 February 2007
But online poker proceeds fell 2.7 percent
Ladbrokes saw profit across its e-gaming operations
grow by 13.5 percent last year, the company announced
this week, but admitted that poker gross win fell over
the period by 2.7 percent.
Blaming increased competition for the fall, Ladbrokes
singled out Swedish national monopoly operator Svenska
Spel, which launched its own poker operations in April
2006. The FIFA World Cup-related absence from poker
sites was a contributing factor as well.
On the positive side, sign-ups in the fourth quarter
were 39 percent higher than in the previous quarter and
on average players were spending 16 percent more time on
the e-gaming sites.
“In 2006 the European poker market became increasingly
competitive on price, that is with regard to rakeback.,"
said John O’Reilly, managing director of remote gaming.
"But we have continued to recruit increasing numbers of
players. We believe we have turned a corner.”
Ladbrokes' year-end results saw gross win across the
company breach the GBP1billion for the first time, from
GBP918 million in 2005. Operating profit rose to GBP268
million, up from GBP249 million last year while pre-tax
profit, which benefited from the sale of Ladbrokes
hotels business, stood at GBP669 million compared with
GBP394 million in 2005.
The online side of the business shone; sportsbook gross
win, including Ladbrokes Financials, rose 41 percent to
GBP46.4 million, including a GBP4.6 million contribution
from the World Cup. Growth in the second half remained
strong at 28 percent, which included an increase in
in-play betting. For the year, average monthly active
player days grew by 35 percent to 610 000 and yield per
active player grew 7.5 percent to GBP114.
On the casino front, gross win grew 14 percent to
GBP44.7 million with double digit growth in both the
first and second halves of the year under review.
Average monthly active player days were up 13 percent at
72 000, with unique active players up 17 percent and
yield per unique active players flat at GBP454.
Gross games win rose by 35 percent to GBP13 million
following the launch of bingo and a ‘Deal or No Deal’
game.
The company said operating costs in its Internet gaming
endeavours rose 16 percent to GBP80 million.
On the land side of the business the big news was
confirmation from CEO Christopher Bell that the group
would bid for the Manchester supercasino license and
other, smaller licenses, entering the supercasino race
with an unidentified joint venture partner. Bell said
that preparations for the bids were well advanced.
The executive is clearly proud of the international
penetration achieved over the past year, with licences
in Italy and a joint venture in Spain. The company said
it expected the two countries to add in the region of
between GBP20 million and GBP40 million of EBIT per year
in the next three to five years. Moves have also been
made in China and Vietnam.
Online Casino News courtesy of InfoPowa
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