Ladbrokes confirms dual-brand Australia strategy
Betstar customers told brand will "live on" despite AU$22m acquisition as operator hails "growing presence" in the market
Ladbrokes has confirmed the AU$22m (£12.4m) acquisition of Australian online bookmaker Eskander’s Betstar and that it will continue to operate both brands in the market.
As eGaming Review reported yesterday, the UK-listed firm completed the acquisition of its second Australian operator in the past few days having fought-off a number of rival bids from the likes of Unibet and BetEasy.
Betstar management wrote to its customers overnight to inform them of the buyout and that the brand would “live on”.
The brand will however be migrated to the Ladbrokes Australia technology platform, with a new website and mobile site launched in the near future.
Ladbrokes confirmed the deal this morning, revealing that Betstar had around 40,000 registered customers and in the year to 31 March 2014, generated gross win of around $12.9m on $214m amounts staked.
The operator said that the business is projected to break-even at an EBITDA level during that period and that the platform migration would produce annualised cost synergies of approximately $5m.
“Australia represents one of the most vibrant regulated sports betting markets in the world and today’s announcement will see us add new customers to our growing presence,” Damian Cope, Ladbrokes International MD, said.
“It offers us a chance to improve our market share and bring the innovative product development and marketing skills displayed by Ladbrokes.com.au to a wider audience,” Cope added.
Ladbrokes first entered the Australian market with the £13m purchase of Gaming Investments in September last year, and immediately launched Ladbrokes.com.au.