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| Ladbrokes suffers worst Cheltenham Festival in memory | Ladbrokes suffers worst Cheltenham Festival in memory |
| (1 day later) | |
| Bookmaker Ladbrokes has said this year's Cheltenham Festival was its "worst in living memory". | Bookmaker Ladbrokes has said this year's Cheltenham Festival was its "worst in living memory". |
| All bookmakers were hit by a string of favourites winning at the festival, but Ladbrokes also argued that rivals were offering bets at levels that did not make business sense. | All bookmakers were hit by a string of favourites winning at the festival, but Ladbrokes also argued that rivals were offering bets at levels that did not make business sense. |
| Ladbrokes also confirmed that it has a £3m liability if Leicester City win the Premier League. | Ladbrokes also confirmed that it has a £3m liability if Leicester City win the Premier League. |
| Despite this, the company said it had seen an encouraging start to the year. | Despite this, the company said it had seen an encouraging start to the year. |
| Revenue was more than 10% higher. | Revenue was more than 10% higher. |
| Chief executive Jim Mullen said: "At Cheltenham we were reminded of the intense competition with offers and pricing at levels which, in our view, abandoned bookmaking principles. | Chief executive Jim Mullen said: "At Cheltenham we were reminded of the intense competition with offers and pricing at levels which, in our view, abandoned bookmaking principles. |
| "We competed hard but refused to pursue unsustainable strategies." | "We competed hard but refused to pursue unsustainable strategies." |
| He told the BBC gambling was for his customers, not his business: "I've always said we're in the gambling business, we don't gamble... I thought Cheltenham was a race to the bottom." | He told the BBC gambling was for his customers, not his business: "I've always said we're in the gambling business, we don't gamble... I thought Cheltenham was a race to the bottom." |
| The company said the Grand National winner, Rule The World, which was a 33/1 shot, delivered a welcome contrast to Cheltenham. | The company said the Grand National winner, Rule The World, which was a 33/1 shot, delivered a welcome contrast to Cheltenham. |
| Ladbrokes said it was "confident" that its results would be in line with expectations. | Ladbrokes said it was "confident" that its results would be in line with expectations. |
| 'Recreational punter' | 'Recreational punter' |
| Last year Ladbrokes announced plans to merge with its smaller rival, Coral. | |
| UK competition authorities are currently looking at the deal. | UK competition authorities are currently looking at the deal. |
| Steve Clayton, analyst at Hargreaves Lansdown stockbrokers, said the latest trading statement from Ladbrokes was encouraging, but the real issue was whether the merger with Coral would be allowed: "A merged Ladbrokes and Coral will have a dominant retail position, even if many shops have to be sold off. | Steve Clayton, analyst at Hargreaves Lansdown stockbrokers, said the latest trading statement from Ladbrokes was encouraging, but the real issue was whether the merger with Coral would be allowed: "A merged Ladbrokes and Coral will have a dominant retail position, even if many shops have to be sold off. |
| "We expect substantial cost saving will be possible because there will be vast areas of overlap and unnecessary duplication of functions across the combined business." | "We expect substantial cost saving will be possible because there will be vast areas of overlap and unnecessary duplication of functions across the combined business." |
| Ladbrokes is pursuing a different strategy to that of its competitors by focussing on customer service and the occasional punter, who will not necessarily hunt for the best odds. | Ladbrokes is pursuing a different strategy to that of its competitors by focussing on customer service and the occasional punter, who will not necessarily hunt for the best odds. |
| Mr Clayton said: "The bookmaker's strategy is to focus on the 'recreational punter', in other words the still soft and malleable, unhardened gamblers out there. | Mr Clayton said: "The bookmaker's strategy is to focus on the 'recreational punter', in other words the still soft and malleable, unhardened gamblers out there. |
| "These people do not know what the right odds should be, so it is easier to build a fat win margin into the bookmaker's terms." | "These people do not know what the right odds should be, so it is easier to build a fat win margin into the bookmaker's terms." |