Chief executive Jim Mullen has insisted that Ladbrokes is on the right track despite the UK bookmaker having generated its first negative result in a decade by posting a loss of £43.2 million (€55.4 million/$61.1 million) for 2015, down from a profit of £37.7 million in 2014.
Ladbrokes said that revenues rose by 2.1% to £1.2 billion over the course of the full year, with H2 results – in the period following the new strategy introduced by incoming CEO Mullen – actually up by 5% year-on-year.
However, tax increased by £50 million, and Ladbrokes also incurred a £99 million exceptional charge on the writedowns and merger costs. The figures reflected for the first time a new a 15% “point of consumption” tax on gross profits and included £19.8 million in merger costs related to its pending tie-up with rival Coral.
The company added that digital net revenue grew by 12.9%, with the Q4 figure up 31.4% “as marketing and product investment delivered strong growth in actives and staking”.
Mullen said: “I am pleased to be able to report a good start to the delivery of the strategy outlined in July. Although it remains early days there is positive progress to report.
“In UK retail, self-service betting terminals are delivering growth, football is up and our retail team are delivering strong multi-channel growth.
“The full-year figures reflect the costs needed to undertake significant investment to deliver the strategy as well as facing circa £50 million of increased taxation.”
Ladbrokes said that UK Retail net revenue was up 2% with growth of 6.5% in Q4.
Australian operations saw a 65% increase in activity and a 71% rise in net revenue.
Mullen said: “While it is pleasing to report that after two quarters we have made a good start, we are only at the beginning of the journey.
“Therefore, 2016 will see the same focus on winning more recreational customers, excellent operational delivery and a performance driven approach as the basis for delivering on our clear 2017 financial targets.”
source : www.igamingbusiness.com
