Ladbrokes unsure on trading prospects

THE UK's biggest bookmaker Ladbrokes said consumer prospects are "difficult to gauge" after a six per cent revenue slide during the first four months of the year.

Across its chain of UK stores the amounts staked by more cautious punters fell 10 per cent, while January's VAT hike also squeezed net revenues from its gaming machines.

The firm's win margin was also lower than last year, when bookies cleaned up with favourable football results and a 100-1 winner of the Grand National.

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New chief executive Richard Glynn said profits were "broadly" in line with expectations, but added: "The economic environment remains challenging and the strength of UK consumer confidence post the election is difficult to gauge."

Ladbrokes enjoyed a good Cheltenham festival although Tony McCoy's Grand National win at the 15th attempt in April hit the bookies.

"It's been a very mixed period but at the end of the day that's the nature of the business," finance director Brian Wallace said.

Since the end of April, the firm saw a "huge increase" in betting on the general election - although this was another poor result for the bookies as a heavily-backed hung Parliament emerged.

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But Mr Wallace expects upwards of 500 million to be wagered on next month's World Cup and this will generate "ideally double-digit" profits for the company, depending on results.

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.

The group said heavy snow impacted its UK business during January and has launched a savings drive across its betting shops to hold operating costs flat this year.