Ladbrokes reports 5 percent increase in profits between January and April |
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Fri, 26 May 2006 15:20
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LONDON - Gaming company Ladbrokes announced Friday that trading was in line with expectations and that it had made a strong start to the year. Britain's biggest bookmaker said that winnings were up by 11 percent The company also announced that it was looking forward to next month’s soccer World Cup.
"Profit increased during the period by 5 percent, and total gross win rose by 11 percent, benefiting from good horseracing results at Cheltenham and Aintree, continuing growth in eGaming and an improvement in telephone betting," Ladbrokes said in a statement. This is the company's first trading update since selling Hilton hotels for £3.3 billion (€4.8 billion) in February. Ladbrokes said the Gold Cup meeting in Cheltenham and Grand National meeting at Aintree, Liverpool had proved especially profitable for it.
In the first four months of the year ending April winnings increased by 11 percent, while there was a 7 percent rise in European business. Ladbrokes' online business eGaming reported a 26 percent increase in winnings, but there was a 32 percent increase in operating costs that were mostly campaigns to attract customers ahead of the World Cup. Winnings at its telephone betting service rose 43 percent.
“We have had a positive start to the year and are trading in line with our expectations,“ said Ladbrokes chief executive Christopher Bell. “As we approach the busiest part of the sporting year, with the Epsom Derby, the World Cup in Germany, and Royal Ascot to look forward to, I am confident about the prospects for the business.”
Ladbrokes' shares were up 0.6 percent at 396 pence in early trading.
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