Ladbrokes drops 50pc in digital

Product director Richard Ames, who was responsible for IT and trading, stepped down this week in a move reportedly linked to the botched digital strategy that has left it trailing big rival William Hill. The UK’s second biggest bookmaker saw operating profits at the digital arm slide to £15m from £29.7m in the six months to June 30 as it failed to offer new products due to delays in technology.

The wider group, which has 2,150 shops in the UK, saw operating profits rise 11 per cent to £106.9m and revenues improve eight per cent to £529m in the period, boosted by strong performances from the Grand National and Cheltenham horse racing festival. The digital division, which covers betting and gaming online and on mobile phones, has been beset by delays in bringing in new IT systems, trading platforms and new products. Operating costs still rose 30 per cent to £72.8m, which was driven by increased marketing spending. The group admitted the slide in digital profit was greater than expected and its priority was to bring in the new technology required. Its new mobile platform will begin early-stage testing in the first quarter of 2013 and the group expects the new technology to provide “significant benefits” throughout 2013.

The UK retail division saw net revenues increase by 9.7 per cent, driven by the popularity of gaming machines, which saw a 20 per cent increase in the amount staked to £5.9bn in the period.