Mobile growth fails to offset Lads online decline
Bookmaker to launch new website in coming weeks following 3.5% year-on-year decline in egaming net revenues.
A strong mobile performance was not enough for Ladbrokes to avoid a 3.5% year-on-year decline in net online gaming revenue, the operator announced in its results for the 12 months ended 31 December.
At the company’s full-year results presentation for the 2010 financial year chief executive Richard Glynn (pictured) had pledged to focus on mobile and online, following operating profit and revenue growth of 7.7% and 5.4% respectively.
However this year the numbers fell back towards, or below, 2009 levels, with online operating profit of £55m representing a 12.3% year-on-year decline and net gaming revenues for the online arm falling 3.5%.
Mobile was a different story with a 174% year-on-year net revenue increase from £5.7m to £15.6m. This was coupled with November’s launch of an iPhone version of the AtTheRaces live streaming service, and the operator is set to roll out its new in-house mobile platform in the second quarter of 2012.
Mobile bingo and poker apps are also due out in H1, as well as a new app specifically for the 2012 European Football Championships, while a new online sportsbook site “ powered by Hybris technology “ is set to go live this month, following a 77% increase in sportsbook sign-ups in Q4 2011.
Glynn said of the results: “We are continuing to invest in technology to improve our trading capabilities, expand our range of products and improve our delivery to the customer. Mobile is delivering impressive growth with further product expansion and innovation to come throughout the year.”
The last 12 months saw moves towards consolidation fall down with Ladbrokes terminating talks with 888 in April before October saw merger discussions with Sportingbet brought to a halt.
However, the company successfully completed a strategic acquisition in the US, buying a controlling stake in Las Vegas-based software provider Stadium Technology Group.
There has been more progress on the supplier front following successful renegotiations with the likes of Microgaming, while the operator entered into early-stage talks with Betdaq in January over a potential supplier deal.
Ladbrokes’ digital decline was somewhat offset by a stronger retail performance in 2011, with 2.1% net revenue growth helping contribute to growth of 0.4% for the group as a whole, while net debt was reduced by £38.1m to £453.9m.
Simon French, analyst at Panmure Gordon, reiterated his firm’s ‘Sell’ recommendation, citing “poor Digital performance and uncertainty around rate of Machine Gaming Duty and the likely introduction of UK GPT on online gross win in 2014.”
The company has also announced the appointment of two new non-executive directors, while Pippa Wicks has left the board after eight years.