In its announcement of preliminary results for the twelve months up to 31 December 2006, Ladbrokes has confirmed that it intends to bid for the regional casino licence in Manchester. The company says it is also interested in operating several of the 16 new small and large casinos. In 2006 operating profits from continuing operations rose 7.7% to a record £268.1 million (US$522.1 million).

In its trading highlights Ladbrokes commented that in the World Cup the Italian team had not been heavily backed and a gross win of £17.5 million (US$34.2 million) was achieved during the tournament. Those betting on horse races had better luck, with a historically high number of winning 1st and 2nd favourites in the last quarter. Gross win for the year across the company as a whole rose 9.9% to £1,008 million (US$1.97 billion).

Other financial highlights included an increase of 107% in operating profit at Ladbrokes Ireland, where it is now market leader with 195 shops and continuing to seek further acquisitions, and the impact of high rollers in the telephone betting division where gross win increased by 119.5% and turned a loss in 2005 to a profit of £17.7 million (US$34.5 million). Ladbrokes Sportsbook and Ladbrokes Games were acclaimed as star performers, with active customers up 26.4% and real money sign-ups up 22.6%.

Internationally Ladbrokes now operates 4 shops in Italy and has won 142 licences in the Italian tender process. A joint venture with Cirsa Slot will see a Spanish betting business launched first in Madrid. Ladbrokes is pursuing appeals in various European courts against restrictive practices by some states to preserve their betting monopolies. Chief Executive Christopher Bell said: “The single market should apply to betting and gaming as it does other services and we will continue to challenge those states that restrict competition and choice in betting.”

Summing up performance in 2006 Christopher Bell stated, “We can look back on a significant year of achievement at home and internationally and we are pleased to post a record profit performance. We began the year by selling the hotel division, delivering one of the biggest returns to shareholders on record and announcing our consultancy in China. Along the way we have expanded our online business, invested in our retail estate by launching Ladbrokes Xtra and commenced rollout of the latest FOBTs. We ended the year by winning licences and acquiring shops in Italy and began 2007 by signing a JV to launch a betting business in Spain.” He sees 2007 as challenging but remains confident in the future prospects of Ladbrokes. (E-02.22.07)

© Copyright 2007 CasinoCompendium



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