Ladbrokes has strong sportsbook performance to thank as digital net revenue showed a modest increase in the first quarter. The company’s Interim Management Statement (IMS) showed net revenue across the digital vertical up 9 percent. It was helped by sportsbook net revenue increasing 22.4 percent as in-play, mobile and amounts staked were lauded over. In-play now accounts for 57 percent of all wagers and mobile amounts staked grew 20 percent. After a period of intense digital marketing, growth in digital was not a surprise to chief executive Richard Glynn.
“We have invested considerably more in digital marketing and customer acquisition remains strong. We are starting to see this drive growth in the topline, particularly in the key focus area of UK sportsbook which was up 22%,” Glynn said. “As stated in February, we are confident of delivering Digital profit growth during the second half of the year as the benefits from our investments converge. At this early stage of the year we are in line with the Board’s expectations for the Group in 2012.”
Beyond the sportsbook, games net revenue increased 19 percent due to an increase in content but there was little joy in the other online sectors. Casino net revenue decreased 4.8 percent whereas poker net revenue fell by a disappointing 26.8 percent. Bingo net revenue also decreased 2.6 percent. The company will launch its new website in May and a contract extension with OpenBet will enhance “flexibility of development whilst further expanding games content”.
The rest of the company saw net revenue increase 8.9 percent with operating profit up 3.9 percent at £50.4 million. Retail experience an impressive increase of 9 percent driven by the rise of the machines – 21.7 percent increase in net revenue. End of year results looked rather bleak for the firm and a lot could depend on what their new website looks like as to how successful the year as a whole turns out.
