by Renee Israel
Ladbrokes, the giant UK land and online sports betting operator,
released its preliminary figures for the full year of 2011, reflecting overall
positive results.
The group's net revenues increased by 0.4% to £980.3 million year
on year, while operating profit decreased 0.4% to £193.5 million.
Ladbrokes announced that its debt had been reduced by 6.1% compared
to the previous year, and that its net debt was reduced by £38.1 million.
Most positive for the group, however, was its sign up numbers to
its online sports betting platform. Ladbrokes reported that a growth of 77%
year on year took place in this department, while active players increased by
24%.
The Chief Executive Officer of Ladbrokes, Richard Glynn said about
the preliminary report and Ladbrokes' 2011 revenue growth: "We are
continuing to make progress with our plan to reinvigorate Ladbrokes."
Glynn said that the UK retail business had performed strongly over
the year, and over-the-counter had continued to prove resilient in a weak
economy, "with stakes marginally up on 2010."
The CEO said that the contribution from gaming machines had also
been excellent and that Ladbrokes had grown profit-per-shop for the second year
in a row, despite continued cost pressures.
Ladbrokes Plans Further Growth in 2012
Looking ahead, Richard Glynn said that this year Ladbrokes
expects to build on 2011's "growth in machines, robust cost control, a renewed
focus on local market competitiveness and the evolution of the retail customer
experience."
Glynn said that Ladbrokes was very pleased with the growth in
its customer numbers, and that its sportsbook and casino sign ups had increased
strongly in the second half of 2011, following the beginning of increased
marketing investment in August.
"We are continuing to invest in technology to improve our
delivery to the customer," he said. "Mobile is delivering impressive growth with
further product expansion and innovation to come throughout the year."
Ladbrokes to Invest in Marketing
The CEO of Ladbrokes confirmed that the sports betting group
would continue to invest in brand and digital marketing, especially since it had
begun to see tangible benefits from last year's investments.
He said that while Ladbrokes still remained cautious as per the
outlook of the UK and world economy, the group was nevertheless planning further
growth in the UK's retail gambling market, as well as in the digital market.
"We expect revenues to grow throughout the year as we build upon the positive
growth in customer acquisition achieved to date," he said.
