Lads online revenues rebound as new sportsbook nears
In-play and mobile help digital sports revenues grow 21.8% year-on-year.
Ladbrokes has seen online net revenues grow at a faster rate than its retail arm as it prepares for the full rollout of its new online sportsbook offering, the operator revealed in its interim management statement for the three months ended 30 September.
Digital sports revenues were the star performer with an increase of 21.8% year-on-year, although a decline in poker (down 25.7%) and bingo (down 6.1%) meant net revenue growth from Ladbrokes’ egaming activities came in at 6.1% compared to the corresponding period in 2011. No figures were given for the revenue growth and decline, only percentage changes.
Online profit, which halved year-on-year in August’s H1 figures, was not broken out of the Q3 numbers. However there was a notable development with the operator’s long-awaited online sportsbook being rolled out to selected customers during the third quarter.
The operator has explained in a statement that: “This process, as well as additional upgrades in functionality, will continue throughout Q4. Our plan to migrate customers by the end of Q1 2013 remains on track.”
Originally scheduled for Q2 this year, the OpenBet and Hybris-powered sportsbook platform follows a renewal of the deal with Ladbrokes’ long-term software partner in March, while the beta-testing of the operator’s new mobile platform has also been held back until the first quarter of 2013.
Still, Ladbrokes describes mobile revenues as “strong”, revealing that 40% of digital sportsbook punters bet using their mobile devices, while in-play now contributes 66% of sportsbook stakes outside horse and greyhound racing.
Chief executive Richard Glynn (pictured) added that: “Enhancements in trading are leading to early signs of an improvement in the quality of turnover, with further developments in pricing and liability management still to come.”
The operator appointed Andy Wright as its new trading director towards the end of the quarter, with Tony Robinson also joining as trading strategy director, and the influence of the duo is anticipated to be seen in Q4 and beyond.
Its online sports betting activities could also be boosted in the coming months by the receipt of a Belgian licences, where it is among 30 operators permitted to apply for one of an anticipated six remaining slots.
Issuing an ‘Add’ recommendation, analyst Ivor Jones of Numis noted this morning that “Ladbrokes’ strong retail cashflow should…be powering the growth of a successful online gambling business.
“If Ladbrokes doesn’t build [a successful online gambling business] we would expect it to buy, or be bought, but we see this as an issue for next year at the earliest,” added Jones.
Ladbrokes’ third-quarter group net revenue rose 3.9% year-on-year, while group operating profit of £49.2m was up less than one percentage point on the corresponding period in 2011.