Ladbrokes Expect Lower Than Expected Profits From Online Business
Playing second fiddle to rival William Hill is proving difficult for Ladbrokes. Only a few weeks ago we reported on their disappointing 20% overall group profit drop for the six months to the end of June.To add to their woes Ladbrokes have announced today that they expect much lower profits from online operations than previously expected.
In worrying figures released they said that instead of the £27.5 million market forecast they have only recorded a £10-£14 million operating profit for its online digital business this year. Needless to say mobile growth is key to the success and potential growth of al bookmakers and Ladbrokes failure to keep up with the likes of William Hill in this market is a major problem.
Chief Executive Richard Glynn explained the disappointing results,” Our digital earnings have been disappointing reflecting a lack of competitiveness in sportsbook, lower margins than planned and a greater disruptive impact than expected from the transition necessary to grow digital for the long term.”
If Ladbrokes intend to remain the second largest British bookmaker they will have to show progress in sports betting which makes up a large portion of rival William Hill’s profits and growth strategy.