Ladbrokes profit up 10% despite slowdown

Ladbrokes today said trading remained in line with market expectations, despite a recent run of poor football and horse racing…

Ladbrokes today said trading remained in line with market expectations, despite a recent run of poor football and horse racing results for the bookmaker.

Group profit in the four months to October 31st rose 10 per cent as gambling machine revenue increased 14 per cent. The average weekly profit for a machine was £677.

Total gross win - the amount of income after payouts to punters is subtracted - rose 5 per cent at its UK retail operations.

Chief executive Chris Bell said: "Although a run of poor football and horse race results at the end of the period has affected performance, the group remains within the market expectation range for 2008."

Rival bookie Paddy Power also stuck by earnings forecasts today, although it repeated a previous warning that the economic conditions were having an effect on the group.

It said in August that it expects figures for 2008 to exceed last year's level, but not by the amount hoped for earlier in the year.

Ladbrokes recently announced half-year profits of £98.3 million for its retail arm, down 2.6 per cent on a year earlier after unfavourable results at Royal Ascot and Euro 2008 hit margins in June.

Group profits were down to £126.7 million from £154.4 million as the surplus generated by "high-roller" customers reduced by £20 million to £40 million.

Ladbrokes has 2,600 betting shops in the UK, Ireland and continental Europe. It also has an e-gaming division, which achieved profits of £26.2 million at the half-year.

Recent trading was impacted by results at the US Breeders' Cup race meeting, when Frankie Dettori's mount Raven's Pass was among five European winners.

The Uefa Cup also went against Ladbrokes on October 23rd, when 14 out of the 16 games were won by favourites.