Winning trend for Ladbrokes as quarterly profits increase

Operating profits rose from last year's 22.4m to 51.1m in the three months to September 30.

Last year's trading performance was hit by a winning start to the football season by Chelsea and Manchester United and the low incidence of draws – the bookies' favourite result.

With Ladbrokes also benefiting from a profitable end to the World Cup and a stronger performance from its gaming machines, the company said its UK shop revenues for the three month period were up by 12 per cent.

This was despite a five per cent decline in the amount of money staked by customers in the company's 2,000 shops.

In Ireland, the country's economic difficulties were blamed for a nine per cent decline in the amount of money staked by over-the-counter customers.

Overall, chief executive Richard Glynn said the third quarter trading performance had boosted expectations that Ladbrokes will meet its targets for the full year.

"Ladbrokes has a great brand and a strengthened management team determined to drive operational improvements going forward," he said.

Operating profits for the three months to September 30 rose 128 per cent from a year ago.

The World Cup resulted in a surge in business, with revenue rising 12 per cent, while the company also lowered its operating costs.

Ladbrokes is the latest gambling company to have reported an upbeat business outlook.

In August, rival William Hill said it is on track to meet full year-expectations after reporting higher first-half earnings, while earlier this month Rank forecast a full-year performance around the top end of analysts' expectations as it posted higher third-quarter revenues. Morgan Stanley analysts said in a research note: "We see some cyclical recovery potential in retail, some catch-up potential relative to William Hill and reasonable long-term growth potential in online."

In August, new Ladbrokes' chief executive Richard Glynn restored the company's dividend and announced a management shake-up.

Ladbrokes' shares closed up 3.1p at 141.1p.