Ladbrokes sees drop in UK retail profits

The firm's win margin was also lower than last year as horse racing results, in particular the hammering for layers at Royal Ascot, offset a decent World Cup when a high number of draws and low goal-scoring left punters clear losers.

Revenues from over-the-counter betting fell six per cent but a better performance from the company's 8,000-strong estate of gaming machines meant overall revenues for the UK retail business declined 3.2 per cent to 332.7m.

Profits fell 6.3 per cent to 76.9 million as a planned material reduction in free promotional bets offset the lower stakes and gross win seen in over-the-counter betting.

Ladbrokes, which traces its history back to 1886, has more than 2,700 betting shops and is a market leader in the UK, Ireland, Belgium and Spain.

It posted a 1.2 per cent rise in revenues from its eGaming business, with growth in its sportsbook and in bingo offsetting continued weakness in poker. Operating profits for the division rose nearly 40 per cent to 29.1m due to relocation savings following its decision to move the business to Gibraltar.

A sharp drop in profits from high-rollers in its telephone business meant overall group profits fell to 105.1m from 130m. Excluding the high-roller business, operating profits grew 5.1 per cent to 103.6m in the six months to June 30.

Ladbrokes' new chief executive Richard Glynn joined in April from betting firm Sporting Index with a 12m incentive to double the group's share price.

He has started a review of the business and will look at areas including technology, the internet performance and brand effectiveness.

Further details of the review are expected in February.

Mr Glynn said: "The group has strong foundations and a great brand and we are moving swiftly to address historical operational weaknesses."