Ladbrokes to close 50 shops as profits dive
Bookmaker Ladbrokes has reported a collapse in profit before tax of 66 per cent to £67m for the year ended 31 December. The company has been hit hard by tax changes to gaming machines and the rising cost of horse racing picture rights.
Richard Glynn, chief executive, commented:
While our financial results for 2013 were disappointing, we made real operational progress which has continued into this year. We remain confident about the direction of the business and the momentum we are creating.
As we have made clear, H1 is about delivery and H2 is about growth. Our immediate focus is on the completion of our remaining platform, product and capability upgrades, notably single wallet and CRM, which will begin to deliver tangible benefits from the World Cup onwards.
The company says it is encouraged by the early evidence from changes to its desktop sportsbook and mobile offerings.
Ladbrokes said the high street betting continues to be continues to be an attractive for customers and still offers a steady stream of income "despite a a difficult trading and regulatory environment."
Ladbrokes confirmed it would be closing between 40-50 betting shops.