Ladbrokes is still suffering online blues

The group, which has around 2,700 shops, said it was disappointed its online figures were “still not where we anticipated they would be.”

Shares dropped 10 per cent following the latest downbeat update from the chain, which recently posted a 50 per cent drop in half-year profits.

It offered some encouragement for investors by reporting improved trading in its shop estate, with a recovery in footfall and a significant improvement in the amounts staked over the counter.

Ladbrokes recently announced a tie-up with gaming software firm Playtech in an effort to address its underperformance in digital gaming.

But the company admitted there was still a lack of competitiveness in its sportsbook, while there has been a greater disruptive impact from the work needed to grow digital for the long-term.

It believes that digital profits will be in the range of £10m to £14m, compared with the City’s forecast of around £27.5m.

Chief executive Richard Glynn said: “We remain confident the strong foundations we are putting in place will drive performance during 2014 and beyond.”

Despite the better trading in its retail estate, Ladbrokes said betting shop results will be impacted by ongoing pressure on margins.

Panmure Gordon stockbrokers said it would downgrade its profits forecast for 2013 by at least £19m to £121m.

While the company has committed to retaining its dividend at the current level in this year and next, Panmure analyst Karl Burns said senior management were likely to come under “significant pressure” given the continued disappointment in digital trading.

Chairman Peter Erskine said the company would support Mr Glynn and his strategy for the time being, having invested £50m to improve the company’s online products.

“We remain fully confident in this management team to deliver them,” Mr Erskine said of the digital plans, saying that the onus is on Mr Glynn and his team to deliver on an upturn promised by the middle of next year.

Group operating profit fell almost 20 per cent to £85.7m in the first six months, the company said in August. It had warned in April that profit for the year would fall after a poor performance from horse racing and online gaming in the first quarter