Ladbrokes continues on its journey to modernise the business. While we are disappointed that the financial results do not reflect the progress we are making, the strategy is the right one.
Peter Erskine Chairman
Percentage of Group net revenue(1)
(1)Excluding High Rollers.
(2)Profit before tax, net finance expense and exceptional items.
(3)Prior year adjusted to reflect the change in machine taxation from VAT to Machine Games Duty (MGD)
UK RetailNet revenue(1)(3)£800.9m-0.3%
European RetailNet revenue(1)(3)£128.8m+1 .3%
DigitalNet revenue(1)£175.0m-1 .7%
TelephoneNet revenue(1)£6.5m-31 .6%
(1)Excluding High Rollers.
(3)Prior year adjusted to reflect the change in machine taxation from VAT to Machine Games Duty (MGD).
Ladbrokes aims to generate long-term value to shareholders and an exciting gambling experience to customers. Our business is built on bookmaking expertise and is delivered through Retail and Telephone operations as well as Mobile and Digital services. We are a brand leader in the UK, Ireland and Belgium and we are developing businesses in other key territories.
Retail betting has evolved to become a genuine leisure experience over recent years in both our core market and overseas. We strive to innovate continually, providing customers with a differentiated product offer, whilst optimising both margin and operational efficiency.
The digital betting and gaming market continues to grow and is becoming increasingly competitive. We aim to provide flexible technology which allows us to deliver the broadest range of products to customers.
The utilisation of a proprietary trading platform, enhancement of algorithims and increasing use of automated trading tools enables us to improve liability management and reduce earnings volatility.
Ladbrokes is still the most recognised betting brand in the UK. We invest to evolve the brand with an emphasis on excitement. The development of our offer, be it in Digital or Retail, is centred around improving the experience of customers.
The continued evolution of tax and regulation is a key influence on the development of our business. Ladbrokes seeks to play a lead role in ensuring that the Government and all regulatory authorities fully understand our industry and its significant contribution to the economy, employment and taxes.
We have adopted an integrated approach to our risk management and responsibilities.
Behaving responsibly has always been a priority for Ladbrokes and Fair Play is built into the way we do business.
Cheltenham Festival – jump racing’s premier four days saw over £40m staked with Ladbrokes.
The Grand National – the nation’s favourite race with over 4m bets placed in Retail alone. The unfancied Auroras Encore won at 66/1, a very good result for shareholders.
The Champions League Final was the biggest single event of the year for football with 75,000 people placing bets on the match. The win by favourites BayernMunich helped make the event a good one for customers.
Also in May, the FA Cup Final saw 51,000 bets placed with nearly a million pounds staked. Wigan’s win surprised the favourites and customers and culminated a tournament where we had several market-leading offers to drive business.
Andy Murray’s historic victory at Wimbledon saw the nation celebrate and, with 200,000 bets placed throughout, it was also a tournament where patriotism was backed by belief. That said, even in his finest hour Andy Murray’s straight sets success saw us win as most people had put money on a more nail-biting finish.
Phil Mickleson’s win at The Open Championship was the worst result of any golf tournament in recent history with Phil obliging from 25/1. Equally painful were the wellbacked golfers who filled the next five places, meaning that the worst six possible results finished in the in the top six spots. We calculate the chances of that happening were 500,000/1 and this was a real case of the long shot doing us no favours.
Golf’s US Open at Merrion saw 140,000 bets placed with us. Justin Rose is a perennial favourite for our customers so his success, although great for European golf, was not great for us. However, we managed to keep our heads in front as Tiger Woods’ and Rory McIlroy’s failure helped manage our position.
Ruler of the World wins the Derby with 40,000 bets riding on his success. Despite this high level of backing, his defeat of the well fancied Dawn Approach means it is a good result for Ladbrokes.
The football season kicks off in August but it is a Champion’s League day in November which hits us hardest. Seven from seven favourites oblige along with Manchester United at combined odds of 33/1 to give us the worst single day’s results for football in the entire year.
The rugby internationals were not kind on the weekend of 16/17 as every result goes the customers’ way. With 35,000 bets staked, it was a good day for our rugby betting customers.
A customer ends 2013 on a high after becoming a millionaire from just a £4 stake. The shop customer landed a £1 million windfall on 28 December for an outlay of just £4 after he correctly matched six numbers on the popular lotto style draw ‘49s’.
The biggest event of 2014 is likely to be the Football World Cup in Brazil. As well as attracting a number of ‘one-off’ customers, experience shows that after a major tournament we see growth in the football business at the start the following season.
66/1 The price England have already been available at for customers signing up to our new Mobile offer.
48 Number of Football World Cup matches
The Board provides strategic leadership and oversight. It is committed to high standards of corporate governance throughout the Group's operations.