Ladbrokes reported a better-than-expected 94% jump in operating profits for the past three months today, taking some of the pressure off chief executive Richard Glynn who has struggled against rival William Hill in recent years.
Germany’s win at the World Cup, Manchester United’s poor performance in the Premiership and Manchester City’s stumbles in Europe have helped all bookies in the July to September quarter.
Glynn, who has been battling to improve Ladbrokes’ digital betting side, said: “We are on track. We have done a great deal and operationally can see the change happening but there is still an awful lot to do. I want us to be back as the dominant bookmaker in this country.”
He also said that it was inevitable that more betting shops will close: the firm shut 49 in the first half and will shut another 40 in the second. He said: “Further closures in 2015 are inevitable but I am not going to say how many. The size of our estate will be smaller than it is today as we face new and increased taxes and tougher rules on social responsibility.
“This is an industry which has had its fair share of scrutiny but we have responded to that and changed. We now need a period of stability for the industry and for those millions of customers for whom betting is part of their entertainment.”
Helped by that run of good football results, operating profits rose 94% to £33 million in the quarter on revenues up 13%. Glynn said the group was on target to hit City forecasts for the full year.
The Scottish referendum also proved a winner for Ladbrokes, which took more than 25,000 bets totalling more than £2.4 million and Glynn is looking forward to a “really exciting General Election” next year.
But not all results went in the bookie’s favour. Notably the St Leger, which Ladbrokes sponsors, saw the firm favourite Kingston Hill romp home at 9-4 to the delight of punters.
