Ladbrokes takeover talks fail

The pair announced they were in discussions in December, amid reports that Ladbrokes could offer as much as £240m for its rival in a move that would have boosted its online offer, which was lagging those of its peers.

But it is believed the companies could not agree on a price for 888, which is advertised by former Australian cricket star Shane Warne, despite months of haggling.

Ladbrokes chief executive Richard Glynn said: “At the end of the day I simply decided it was not in the interests of shareholders.”

The company will continue to look at opportunities for takeovers but Mr Glynn said he was under no pressure to strike any deals and was focused on growing the company organically.

Ladbrokes, the world’s largest betting shop chain, also said net revenues excluding high roller customers, increased 2.3 per cent in the first quarter of 2011, with stronger results in recent weeks following “some great football results”.

This was despite a poor Cheltenham Festival last month, when net revenues were down £10.7m on the previous year as more favourites came in.

Online revenues were up 1.2 per cent as strong growth in casino and bingo was offset by a 33 per cent decline in income from poker.

Bets through mobile phone applications grew 250 per cent, with 18 per cent of digital customers placing at least one bet through this channel.

In the UK, where the group has 2,100 outlets, net revenues increased 6.4 per cent in the quarter.

The group is introducing new gambling slot machines into all of its UK outlets and the roll-out is expected to complete ahead of schedule next month.

Mr Glynn added: “Our drive to make Ladbrokes favourite again has good momentum.”

But the group expects the UK to remain challenging this year as consumer confidence and disposable incomes continue to suffer.