UK bookmaker reveals overall earnings of $833.36 million with pre-tax profits up 60 percent.
Wednesday 5th March 2008
UK gambling group Ladbrokes has delivered an impressive set of full-year results revealing a 60 percent rise in pre-tax profits and an almost 30 percent growth in gross wins.
The firm stated that its remote gambling division produced a 20 percent surge in pre-tax profits with the telephone service action generated by high roller wagering making a significant contribution to these results.
Online sportsbook operations were also strong performers with John O’Reilly, Head of Online Gaming for Ladbrokes, stating that these profits would enable more marketing activities in the future.
Overall, the firm reported full year earnings for 2007 of $833.36 million, up from 2006’s $520.25 million, leading to pre-tax profit increasing by impressive 60 percent. Gross wins rose almost 30 percent to $2.57 billion from the previous year’s $1.96 billion while remote gaming pre-tax profits grew to $109.14 million from 2006’s $87.91 million. Total e-gaming gross wins came in at $310.58 million up from the previous $286.55 million.
The firm’s sportsbook activities increased net revenues by 14.7 percent to $103.59 million and delivered a 7.2 percent margin while casino net revenues rose 5.1 percent to $85.33 million. However, revenues from poker dropped 11.4 percent to 61.52 million, which the company attributed to the ongoing competitive environment in the European market.
Ladbrokes also stated that its acquisition of Nordic partner Sponsio in January of 2007 helped it to increase profit conversion rates from 33 percent of net gaming revenue in 2006 to 38.3 percent last year and it intends to maximise the brand and technology advantage it has acquired in the online sector and boost investment levels during the year to acquire greater numbers of players.
UK gambling group Ladbrokes has delivered an impressive set of full-year results revealing a 60 percent rise in pre-tax profits and an almost 30 percent growth in gross wins.