Lucky streak for punters has hit Ladbrokes profit
SHARES in bookmaker Ladbrokes closed down 3.2 per cent at 102.7p yesterday, after the company reported a year-on-year fall in operating profits of 22 per cent to £14.3m.
The group’s net revenue did rise 3.3 per cent in the first three months of 2015, and the bookies’ digital offering continues to grow, with mobile betting up 62.7 per cent. However, results favouring punters have hit the firm hard.
Regulatory and tax pressures have also forced the firm to close 150 of its tractional betting shops over the course of the past year.
Regulations that have caused problems for the firm include the increase in machines games duty from 20 to 25 per cent, brought in by chancellor George Osborne in his 2014 Budget
Both campaigners and politicians have consistently been taking aim at one of bookmakers’ major sources of income – fixed odds betting terminals. The machines, which appear in many betting shops, are considered more addictive than ordinary betting.
Gambling profits have also been targeted by a 15 per cent point of consumption tax that came into force in December.
The bookmaker has also withdrawn from unregulated digital markets to comply with guidelines set forth by the UK gambling commission.
After these difficult times, chief executive Jim Mullen has decided to bring forward his review of the wider business to June.
He commented: “These results demonstrate the challenges we continue to face. We need to change the way we run the business, build scale, primarily in digital and respond faster to the customer and changes in the market place.”