Mixed Fortunes For Ladbrokes in Interim Results
Ladbrokes, the UK-listed bookmaker, announced its results for the first six months of 2011 on 4 August.
The group’s net revenue fell from GB£492.1 million in H1 2010 to GB£478.8 million in H1 2011. These figures do not include the contribution from Ladbrokes’ “high roller” gamblers. In the first six months of the year these high rolling bettors actually won money from Ladbrokes overall, as the company had a negative net revenue of GB£4.7 million from these customers (H1 2010: GB£8.1 million).

Ladbrokes’ operating profit fell from GB£112.5 million in the first six months of 2010 to GB£93.6 million in H1 2011.
In Ladbrokes’ UK betting shops the Over The Counter (OTC) margin fell slightly from 16.3% to 16.0% year on year.
Stakes per slip were GB£8.25 in H1 2011 compared to GB£8.40 in H1 2010.
In the renamed “Digital” division (e-gaming), net revenues were virtually unchanged year on year: GB£85.7 million in 2011 versus GB£85.6 million in 2010.
Ladbrokes’ online poker revenues fell by GB£3.3 million to GB£7.4 million, whilst online Bingo and Casino saw revenues rise to GB£7.2 million and GB£28.9 million respectively. 

A reduction in marketing and affiliate costs of 26% in its Digital division helped lower operating costs and increase operating profit slightly, despite flat net revenues. Marketing costs were reduced from GB£20.2 million (equivalent to 23.6% of 2010 net revenues) to GB£14.9 million (equivalent to 17.4% of 2011 net revenues).
There were 249,000 real money sign-ups in H1 2011 versus 266,000 in H1 2010, although it should be remembered 2010 was a World Cup year, with extra promotion and marketing around the event. 

In the Digital division Ladbrokes has said its priorities are:
– Further product development in areas such as in-running betting, mobile, and its e-commerce platform
– Increasing revenues from mobile betting
– Opportunities in regulated international markets