Wednesday 7 December 2016

Ladbrokes' Irish profit down 15.6pc

Published 17/02/2012 | 05:00

PROFITS at the Irish arm of UK betting business Ladbrokes fell 15.6pc to £9.2m (€11m) last year as its operating costs rose on the back of shop acquisitions.

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Releasing results yesterday, Ladbrokes said that despite the tough economic backdrop in Ireland, the amount of money staked in its stores here rose 7.5pc in 2011 to £598.3m (€721m).

That excluded the £149m (€179.5m) that was bet on in-store machines in its Northern Ireland outlets.

Ladbrokes said that the gross win for the group from its over-the-counter bets at Irish stores nudged up 0.9pc last year to £75.7m (€91.2m), while operating costs jumped 6.8pc to £62.1m (€74.8m).

The company said that its gross win margin from bets staked in its Irish stores slipped 0.8 percentage points during the year to 12.7pc.

That was impacted by horse-racing results in the first half of the year that proved favourable to customers.

At the Cheltenham Festival last March Irish punters cleaned up after 13 Irish-trained horses galloped home to secure first place finishes. "Faced with the current economic downturn we have focused on local competition and a drive to increase market share in the Republic of Ireland, as well as maintaining a tight control on costs across the whole Irish estate," the company said.

On a group basis, Ladbrokes reported a 0.4pc rise in net revenue to £980.3m (€1.18bn), while operating profit declined 0.4pc to £193.5m (€233m).

Chief executive Richard Glynn said the group's UK retail business had "performed strongly" during the year and that the profit per shop was 6.9pc higher.

Irish Independent

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