Ladbrokes reports revenue and profits decline

Ladbrokes: 2007 campaign starring Jimmy Hill
Ladbrokes: 2007 campaign starring Jimmy Hill

LONDON - Ladbrokes has reported a 32% drop in profits with the bookies blaming the recession and bad weather.

Group profit before tax also declined from £250.7m to £168.5m in the year ending 31 December 2009, while group revenue dropped from just over £1bn 2008 to £963.7m.

Sales have continued to decline this year. In the period from 1 January to 16 February revenue dropped 4.6% against the same period in 2009.

Ladbrokes said that this was due to a high level of UK and Irish horse race abandonments and football match postponements.

Peter Erskine, chairman at Ladrokes, said: "2009 was a challenging year for Ladbrokes. We were impacted by the deteriorating economic environment and the industry-wide issue of lower third quarter gross win margins."

The comppany did claim to have benefited from its CRM programme, OddsOn! which was launched in 2008. It said that the loyalty programme accounts for around 40% of over the counter amounts staked. 

In July 2009 Ladbrokes turned it's focus from recruitment to targeted marketing and expects to reduce free bets from £16.3m in 2009 to £10m in 2010. It added that it was "encouraged" by the targeted marketing activity.

Labrokes in November also strengthened its board with the appointment of Sly Bailey, chief executive officer of Trinity Mirror and Darren Shapland, chief financial officer of Sainsbury as non-executive directors.

The company is still on the hunt for a new chief executive following last month's announcement that Chris Bell is stepping down, after almost 20 years with the betting company.


Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now


Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Toyota achieves the impossible by calming angry Roman drivers
Tom of Finland's 'homoerotic' drawings made into stamps
YouTube reveals user habits to appeal to 'older' marketers
Ex-M&S marketing chief Steven Sharp consulting at WPP
Wolff Olins reveals new CEO after Apple poaches Karl Heiselman
Glasgow offers £30,000 prize to best digital idea for 2014 Commonwealth Games
Google's revenues surge but shares drop as it grapples with transition to mobile
Facebook beats Twitter to most 'marketing friendly' social media site crown, says DMA
Fableists believe children like Finn should be outdoors enjoying life
Homebase, Baileys and Camelot join the line-up at Media360
MasterCard renews Rugby World Cup sponsorship to push cashless message
Lynx unleashes £9m 'Peace invasion' campaign
Social Brands 100 Youth: Pizza Hut most social youth brand in UK
Cheryl Cole is wild and arresting in new L'Oreal work
Morrisons told not to show alcohol ads during YouTube nursery rhymes
O2 head of brand Shadi Halliwell departs after 23 years at company in restructure
Tesco hit by further sales decline as it turns to digital Clubcard and social network
Branding guru Wally Olins dies aged 83
Duracell short film captures epic Transatlantic voyage
Ash runs Tinder experiment to show smokers are less desirable to opposite sex
British Airways teams up with Gerry Cottle Jnr for summer of rooftop film screenings
Arklu says 'girls can be superheroes too' with doll design competition
Coke enters squash market with Oasis Mighty Drops
Virgin Galactic signs up Land Rover as space flight sponsor
Motorola marketer Andrew Morley departs as Google gears up for sale to Lenovo
US Airways apologises after tweeting obscene image at a customer
Mumsnet admits users' emails and passwords accessed via Heartbleed bug