Ladbrokes To Open 50 New Betting Shops In 2011

Ladbrokes To Open 50 New Betting Shops In 2011

Ladbrokes today issued it's full year results for 2010 with profit in all divisions rising by over 10% and retail doing considerably better than most observers anticipated . Ladbrokes retail division contributed £149M of profit in 2010 up from a meagre £134M the previous year despite all the doom and gloom which is often attributed to the sector . Ladbrokes achieved this 10.9% increase in retail partly by cutting costs but more generally by improving performance from "roulette" machines particularly in the second half of the financial year .  Ladbrokes continue to expand their retail estate with 40 new shops opening in 2010 and a further 50 new openings planned for 2011 . Ladbrokes Chief Executive Richard Glynn described the opening of new betting shops as "financially compelling" with an average payback of within three years .

Whilst Ladbrokes retail saw turnover fall by 7.3% this was compensated to a large extent by an increase in gross margin of 0.8% to 16.7% helped by a big increase in margins on football betting . The 2098 shops operated by Ladbrokes in Great Britain is clearly still a very strong and robust business and is a great support for the digital business where Ladbrokes has somewhat lagged it's rivals . The report issued today revealed that 26% of Ladbrokes online customers join at "zero" direct cost by typing ladbrokes.com into their browser and approximately 30% at minimal cost through the use of a search engine. Ladbrokes are reliant upon their high street prescence to promote their digital brand and enable this very effective bricks to clicks cross selling .

Ladbrokes further announced today that they would be investing a further £50M into a new e-commerce platform which will allow customers to have a single online 'wallet' for all Ladbrokes' web products, and develop its own customer-facing site to which it can add gaming and sports betting products. The online business contributed £62.7M of profit in 2010 a 36% increase on 2009 but still only 41% of the amount contributed by the retail division .

Ladbrokes shares fell 3% in morning trading following the results announcement . 

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