Cheltenham proved far from a festival for Ladbrokes

The company, which has more than 2,700 betting shops, said lower revenues from high value gaming customers and the big number of horse racing fixtures lost to the weather also impacted the three months to March 31.

Profits were down £13m to £37.4m in the period, including £6m in lost revenues after a good week for punters at the Cheltenham festival last month.

Shares fell 6 per cent yesterday as Ladbrokes said it expects operating profits for this year to be at the bottom end of current market forecasts.

While trading conditions remain challenging, the firm received a boost this month when 66-1 outsider Auroras Encore won the Grand National at Aintree, triggering a £15m windfall for the group.

Other sporting results have also gone in the company’s favour, particularly in football, as the company’s overall gross win percentage still improved to 18.9 per cent for the quarter, from 17.2 per cent a year earlier.

Gaming machine revenues have been a big driver of growth in the industry but Ladbrokes has warned it expects rates to slow as the market becomes more competitive. It has also been hit by a new 20 per cent machine gaming duty this year.

With around 8,500 machines in the UK estate, gross win per machine for the quarter was £916 a week, down from £923 a year earlier.

Chief executive Richard Glynn said: “The trading environment and economic conditions since the start of the year have remained challenging, which when combined with a number of specific one-off factors in the latter part of the period, have driven a softer first quarter than expected.”

Ladbrokes has announced a tie-up with a gaming software firm to address its underperformance in digital gaming.