Multi-channel and Australia star as Ladbrokes Q3 revenues grow 6%
Sportsbook revenues flat line but turnover up by a third, chief executive Jim Mullen says results show "positive initial progress"
Ladbrokes this morning posted a 6.4% year-on-year increase in Q3 digital revenues driven by double-digit growth in gaming and another strong performance from its rapidly expanding Australian arm.
Total gaming revenues for the three months ended 30 September were up 11.5% while its largely independent Australia-facing business saw revenues increase by 26%, boosted by a near 90% growth in active customers.
Outside of Australia, sportsbook revenues remained relatively flat as margin dipped from 8.9% to 6.8%. However, an increase in marketing to around 30% of revenues contributed towards a 34% increase in customer staking.
The publication of this morning’s results comes just a few months after Ladbrokes CEO Jim Mullen (pictured), who succeeded Richard Glynn in April, announced a new growth strategy focused on building scale and its multi-channel offer.
“These numbers reflect the first 68 days of activity since we announced our organic plan to aggressively invest and grow our recreational and multi-channel customer base particularly across UK retail, Ladbrokes.com and Ladbrokes Australia,” Mullen said.
“It is early in our journey, but today’s results reflect positive initial progress and customer traction with continued increases in staking and actives across digital and improved staking trends in UK retail driven by football and racing.
“With sports betting at our core we see customers responding well to our products, our value and to our recently launched multi-channel offer. All these initiatives are part of the long term plan for Ladbrokes with our targets based around delivery on hard financials for 2017,” he added.
The firm said the roll-out of new multi-channel products and improved staff training had helped the firm convert 20,000 retail customers to its digital offer while a focus on affiliate marketing and pay-per-click spend also contributed towards a 5.6% increase in actives, or 18% minus last year’s World Cup.
Mullen also offered a brief update on the planned merger with Gala Coral. The chief exec said the combination was “on track” and “progressing” but still in the hands of the UK Competition and Markets Authority.
Ladbrokes share price was up 3.7p to 104.8p after early morning trading.