Bookmaker Ladbrokes reported lower profits for Ireland today after punters won big at Royal Ascot and the Cheltenham Festival.
Profits were down by a third in Ireland to £3.8 million despite an almost 7 per cent rise in the amount staked in bets in the Republic.
Ladbrokes, which runs 2,100 betting shops in the UK and a further 216 stores in the Republic, reported a slip in pre-tax profits across the group today but said demand from punters was “relatively resilient” despite the squeeze on consumer budgets.
The group made a profit of £71.8 million in the half year to June - lower than the £105.1 million achieved a year ago when the World Cup boosted trading.
The amount staked by over-the-counter customers in the UK fell 2.3 per cent to £1.25 billion but this was more than offset by a 8.5 per cent jump in machine gambling to £4.9 billion in the half year.
The sum left by losing punters overall in the UK was down by 4.4 per cent to £202.2 million after a disastrous Cheltenham festival for the industry was countered by the Ascot, Epsom and Grand National meetings.
Telephone betting losses rose to £3.3 million as the high stake customers did well on the Champions League final.
The company added that revenues in July were up 13.6 per cent when adjusting for the World Cup.
Ladbrokes, which said the World Cup impact amounted to £12 million, expects a strong second half from its gaming machines with the focus now on refining their appeal to the markets where they are installed.
Chief executive Richard Glynn said revitalising the Ladbrokes name remains the core focus of the group. A relaunch of the brand is to start next week, which will include a nationwide TV campaign.
While economic conditions are tough, Mr Glynn said the aim is for Ladbrokes to be the “chocolate bar” for its gambling customers, with its duty to deliver excellence and excitement.
There was no news on the recent approach to online group Sportingbet, though Mr Glynn said the ending of discussions with its previous target 888 Holdings, was its decision and based on shareholder value considerations.
PA