Ladbrokes’ profits hit by upgrade

BRITAIN’S second-biggest bookmaker, Ladbrokes, said operating profit would take a hit in the first half of 2014 due to upgrades to its online service, as it ended another troubled year with a sharp fall in annual profit.

By The Newsroom

Published 26th Feb 2014, 01:29 BST

The company has struggled to keep pace with larger rival William Hill and establish itself in a growing online market, prompting a series of profit downgrades that have piled pressure on chief executive Richard Glynn.

Ladbrokes, which has 2,300 retail outlets, formed an alliance with software developer Playtech last year to gain ground in serving the growing number of gamblers who bet on sports events through their computer, tablet or smartphone.

But switching its gaming products to a new system has taken longer than expected.

Mr Glynn said the group was now on track to deliver the upgrade – which will allow its customers to have a single view of all their upgraded online products in one ‘wallet’ – in time for June’s football World Cup in Brazil.

Annual operating profit fell 33 per cent to £138.3m last year.

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