Punters hit Ladbrokes hard
Ladbrokes reported to the City yesterday that it’s reduced gross winnings in October were down due to lucky football and racing punters.
As a result, shares in Ladbrokes fell by almost 5 per cent following news its gross win rose by 8 per cent over 10 months to the end of October.
One of the main causes behind this fall was the opening round of last month’s Champions League games, where 14 out of the 16 favourites won their respective games, hitting Ladbrokes hard. This was followed by another strong performance by favourites in races at Newmarket and Aintree.
Chief Executive Christopher Bell played down the news, saying "While a number of football and racing results went against us in October, early trading has been in line with expectations."
Bell also said that revenues from e-gaming had risen by 17 per cent, with operating costs rising by 27 per cent in the first six months of the year. The latter as a result of hefty advertising campaigns during the World Cup in June.
However, Ladbrokes remained tight-lipped over the ongoing speculation linking them with a bid for 888, stating that it "continues to advance its strategy for growth in e-gaming and expansion into new markets".
In a final piece of good news for Ladbrokes, it was revealed that total winnings from telephone betting rose by 47 per cent over the 10 month period.
Editor, Jackpot.co.uk - 2006-11-17 11:26:08