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Ladbrokes looks to digital future | Ladbrokes looks to digital future |
(about 3 hours later) | |
Bookmaker Ladbrokes saw a 36% rise in profits at its digital business in 2010, including a large increase in betting using mobile phones. | Bookmaker Ladbrokes saw a 36% rise in profits at its digital business in 2010, including a large increase in betting using mobile phones. |
The UK firm sees the future of gambling as increasingly digital, and plans to spend £50m developing its technology. | The UK firm sees the future of gambling as increasingly digital, and plans to spend £50m developing its technology. |
Its bet-in-play business - which takes punts on matches already in progress - also rose strongly, up 27%. | Its bet-in-play business - which takes punts on matches already in progress - also rose strongly, up 27%. |
But pre-tax profits fell 12% to £207m, as earnings from "high rollers" - who bet more than £10,000 - fell sharply. | But pre-tax profits fell 12% to £207m, as earnings from "high rollers" - who bet more than £10,000 - fell sharply. |
Total earnings from these big gamblers fell 93% to £5m for the year, according to the firm's 2010 full-year results. | Total earnings from these big gamblers fell 93% to £5m for the year, according to the firm's 2010 full-year results. |
According to a Ladbrokes spokesman, the slump was due to a combination of fewer bets being placed, and more gamblers winning big, and it followed two years of much stronger profits. | According to a Ladbrokes spokesman, the slump was due to a combination of fewer bets being placed, and more gamblers winning big, and it followed two years of much stronger profits. |
He dismissed suggestions that the company had chosen to wind down this more risky business line. | He dismissed suggestions that the company had chosen to wind down this more risky business line. |
Digital technology | |
Stripping out this typically volatile item, profits at the UK gambling firm were up 20% on a year earlier. | Stripping out this typically volatile item, profits at the UK gambling firm were up 20% on a year earlier. |
The results disappointed markets, with Ladbrokes' share price dropping more than 3.5% on the London Stock Exchange. | The results disappointed markets, with Ladbrokes' share price dropping more than 3.5% on the London Stock Exchange. |
The firm's operating costs proved higher than expected, and some investors were concerned by the need to splash out so much on its IT systems. | The firm's operating costs proved higher than expected, and some investors were concerned by the need to splash out so much on its IT systems. |
"Digital technology has changed the competitive landscape and we realise the imperative to strengthen our capabilities in areas such as Sportsbook, technology, customer management and online marketing," the company said. | "Digital technology has changed the competitive landscape and we realise the imperative to strengthen our capabilities in areas such as Sportsbook, technology, customer management and online marketing," the company said. |
Ladbrokes also said it expected to complete the roll-out of its new Global Draw machines - which will replace 95% of its gambling machines - in the next six months. | Ladbrokes also said it expected to complete the roll-out of its new Global Draw machines - which will replace 95% of its gambling machines - in the next six months. |
The roll-out began last year, and has coincided with a 10% increase in average gross earnings at its terminals in the second half of 2010. | The roll-out began last year, and has coincided with a 10% increase in average gross earnings at its terminals in the second half of 2010. |