Today it was the turn of Ladbrokes plc to issue an Interim Management Statement. For the three months ended 30 September 2010, Group net revenue rose 12% including the benefit of an exceptional recovery in football margin, £8.3 million of gross win from the World Cup and a stronger machine performance. Although money staked over the counter (OTC) declined 5%, OTC gross win increased by 15% with a strong gross win margin of 16.9% compared to 14% in the same period last year.

The management focus on machines continues to have a positive effect with average weekly gross win per gaming machine up 9% at £723. Total machine gross win grew 10% over the corresponding period in 2009. The plans to roll out new Global Draw machines (with OddsOn capability) to 95% of the estate, commencing January 2011, are well advanced and the roll out is expected to be completed by June. Twelve betting shops have been closed over the last three months and seven new venues opened.

Ireland OTC amounts staked at constant currency were down 9% reflecting the continued weakness in the economy. Improvements in the gross win margin to 13.0% (Q3 2009: 11.7%) resulted in flat OTC gross win at constant currency. Overall net revenue in Ireland was flat. In Belgium net revenue rose 2% accompanied by an improvement in the operating profit performance. In Madrid the performance of the Group’s Spanish joint venture continues to be ahead of management expectations.

In eGaming net revenue was up 17% during the period with growth in Sportsbook, Casino and Bingo partially offset by weakness in Poker and Games. Active players were up 7% during the period. Sportsbook turnover grew 19% (excluding the World Cup turnover rose 14%). The gross win margin was 6.7% compared to just 4.6% in Q3 2009 and overall Sportsbook net revenue grew 71%. Active players in the Sportsbook grew by 16%. Casino net revenue rose 6% reflecting 5% growth in active players.

Poker continues to be impacted by the industry-wide issues regarding liquidity in Europe compared to US facing sites and net revenue was down 27% over the prior period. Bingo showed 13% net revenue growth with actives up 1% and yield up 11%. Meanwhile Games net revenue declined 12% with 2% higher active players more than offset by a 12% lower yield.

Core Telephone Betting amounts staked fell 7% but net revenue increased 71% reflecting a 2.4 percentage point improvement in the margin. Costs remain tightly under control and the losses during the third quarter were significantly lower than in 2009. Losses from High Rollers were £4.4 million (2009: £2.8 million loss.) Year to date High Rollers profit is £4.5 million.

Richard Glynn, Chief Executive, commented: “Although bolstered by successful latter stages of the World Cup and an easy comparative period, the growth rates achieved in the third quarter give the Board confidence that the Group is on track to meet its full year expectations. Ladbrokes has a great brand and a strengthened management team determined to drive operational improvements going forward. Though much remains to be done, I am encouraged by the progress we are making across the Group and I look forward to updating the market in February 2011.” (E-10.11.10)

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