Following the release of the Portas Review concern was expressed in some quarters about the number of bookmakers monopolising town centre properties. In fact, it was found that many high streets now contain a number of different chains in which people may place a bet or play on a gambling machine – often, a row of commercial properties will all be dedicated to the money making pursuit.
However, the spread of bookmakers across the country seems unlikely to abate any time soon, with Britain’s second largest chain planning to expand further over the next twelve months.
Ladbrokes enjoyed a hugely successful year in 2012 despite technological setbacks seeing it fall further behind market leader William Hill in terms of its online gambling facilities. Nevertheless, thanks to a stellar effort by its expanding network of high street betting shops, overall operating profits rose by 8 per cent to £206 million – a full £2 million over forecasts made by industry experts.
Although the digital division, which comprises aspects such as online and smartphone gambling, failed to live up to expectations, it still managed to record a 9 per cent boost in revenues, taking the total to £178.1 million. This greatly contributed to a 7.4 per cent increase in total group revenue, which ended 2012 on a high at £1,053.3 million compared to £980.3 million at the end of 2011.
Currently, Ladbrokes operates around 2,000 betting shops in the UK, yet thanks to its resounding success in 2012 bosses are now planning to open a further 100 branches by the end of 2013.
The chain has also finalised a deal to strengthen its digital division, buying online betting exchange Betdaq for the sum of 30 million Euros last month. Clearly, Ladbrokes plans to close the gap between itself and close rival William Hill by adopting the dual high street and online strategy which has worked so well for Britain’s largest betting chain so far.
Chief executive of Ladbrokes, Richard Glynn, says that heavy investment in 2013 will allow the chain to accelerate its shop openings programme and provide customers with an unmatched gambling experience.
He says; “We are continuing to transform Ladbrokes, with the resilience and reinvigoration of the UK retail estate driving another year of growth in profit per shop.
“The development of the digital business is progressing well and our investment in trading systems is generating improved quality of earnings.”
According to Mr Glynn, the start of 2013 has also been hugely promising, with revenues in the first six weeks rising by 7.2 per cent. This has largely been due to the improvements in the digital division.
Mr Glynn continued; “We are starting to see some moderately encouraging signs of payback.”
However, with a new programme of mobile applications and sports betting options to be launched steadily throughout the first half of 2013, it remains to be seen whether this online growth will be sustained during the next two quarters. True digital revenue and earnings growth is not expected to be seen until the second half of the year.
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