Labrokes report profits down by 66%

Labrokes report profits down by 66%

LadbrokesBookmakers_largeLadbrokes became the latest bookie to report their profits in 2013 were down.

Their 2013 results are £67.6 million pounds down on 2012. That’s a drop of 66%.

They blamed all manner of issues for the alarming annual returns. They even had the cheek to allege that football results had gone in favour of the punter. I must have been washing my hair that day!

Chief executive Richard Glyn said: “While our financial results for 2013 were disappointing, we made real operational progress which has continued into this year. We remain confident about the direction of the business and the momentum we are creating.

“As we have made clear, H1 is about delivery and H2 is about growth.  Our immediate focus is on the completion of our remaining platform, product and capability upgrades, notably single wallet and CRM, which will begin to deliver tangible benefits from the World Cup onwards.

“The early evidence from our changes to the desktop sportsbook and to our mobile offer are encouraging, giving us confidence that where our product upgrades and improved capabilities converge behind our brand, we have a powerful proposition.  We look forward to competing even harder through the course of this year.”

Ladbrokes said they would shut between 40 and 50 shops this year.

The company formed a tie-up with software developer Playtech last year and is now switching its gaming products to a new system.

It is aiming to complete the upgrade by the middle of this year to take advantage of interest in the football World Cup in Brazil.

Ladbrokes said its profits had also been hit by a greater than expected slowdown in gaming machine revenues, as well as a change to the way the machine profits were taxed.

It plans to replace 9,000 of its machines with more sophisticated models over the first half of this year.

The move comes amid growing calls for the use of fixed-odds betting terminals, dubbed by critics the “crack cocaine of gambling”, to be banned or limited.

Last September, the bookmaker issued its fourth profit warning in just over a year, after it admitted that the move over to technology provided by Playtech had caused greater disruption than expected.

For those who are into facts and figures, here is a link to the Ladbrokes annual report statement http://otp.investis.com/clients/uk/ladbrokes/rns/regulatory-story.aspx?cid=262&newsid=394779

I would explain the Ladbrokes losses thus.

They are a company stuck in the 1960’s. Their website is abysmal. Their odds worse and, as is the case with other companies such as Coral; they are complacent and take their customers for granted.

Their website and their customer relations need one almighty kick up the backside.

Or else they will go the way of the Monty Python parrot. They will cease to be. Shame!

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