At the start of business on Friday, the English online and live gaming organization Ladbrokes PLC announced its preliminary 2008 financial statements, turning a profit for the year despite the economic collapse of late last summer.
Ladbrokes, which is traded on the London Stock Exchange under the symbol “LAD,” not only operates an online casino, sports book, and poker room, but is also one of the most respected betting shops in England. Despite bleak conditions in the financial industry at the end of 2008, the company was able to increase its revenues, or “win,” across the board.
Excluding its “High Rollers,” Ladbrokes was able to increase overall revenues by 11.1% from 2007 profits of £1,029.4 million to £1,143.9 million in 2008. While its live bookings achieved a slight increase over the fiscal year (from £739.3 million in 2007 to £773.9 million in 2008, a 4.7% jump), its online action showed a sizable jump over the previous year. Online bettors, casino, and poker players wagered £172.2 million over the span of the year, a 20% increase over 2007’s £143.5 million.
There were a couple of downsides to Ladbrokes’ 2008 report. Due to the economic conditions, the action provided by “High Rollers” dropped significantly over the year. While the win from this segment of its operations totaled £80.1 million, it didn’t come close to the 2007 profits of £170 million. The reason for this decline, in addition to the overall economic conditions, is in the unpredictable activity that these types of players provide.
Another disappointment for the company was its performance on the London Stock Exchange. In April of 2008, LAD was trading at £338, its high for the year. Over the course of the next few months, the stock price plunged due to the worldwide economic collapse to just £139 at the end of October. As trading ended on Monday, the stock has been able to recover to £180, but it is still quite a distance from when Ladbrokes stock was at its peak.
In spite of this, Ladbrokes has been able to expand its brand. The company added over 70 shops in Ireland and is expecting growth in other areas of Europe. In Belgium, the company was able to report £3.1 million in profits and should be able to expand on that with the closure of two of its most prominent competitors. 2009 will see Ladbrokes continuing to look into other countries such as Spain, China, and Italy for opportunities.
Overall, Ladbrokes CEO Christopher Bell was optimistic with the outlook for 2009. Bell commented in a release to the London Stock Exchange, “Our performance in the first six weeks of the year shows a gross win growth of one percent, excluding High Rollers. Since the start of the year, [High Rollers’] business has contributed a further £24 million to operating profit to the organization.”
