LAD2 Aug 2012 08:21
Richard Glynn, Chief Executive, commented:
"At a Group level Ladbrokes has performed strongly. We have grown revenue by 8.4% and operating profit by 11.0%, with strong cash generation continuing and a further strengthening of our balance sheet.
Strong growth in operating profit in UK Retail and an improved performance in our European Retail and Telephone businesses was pleasing and more than outweighed a decline in Digital profits, which was greater than expected due largely to a weak sportsbook margin in Q2 and exacerbated by delays in technology.
Looking forward we expect to see further growth in UK Retail and plan to accelerate our programme of shop openings. We remain committed to our Digital strategy of building a more competitive offer through a combination of ongoing investments to enhance our marketing, product and technology.
The delivery of several key technology developments is our focus in H2. During Q4 we will deliver our new sportsbook, and begin the subsequent migration of all active customers. Our new mobile platform, which is reliant on the same technology, will then follow. The active data warehouse, now in use to underpin our new trading fieldbook, will be deployed further in Q4, providing enhanced customer analytics to our marketing teams. This then facilitates the subsequent development of our Customer Relationship Management capabilities. During H2 we will also extend the use of recent enhancements in our trading systems to cover further core sporting products. We remain confident that a combination of these developments, together with continued improvements to CRM throughout 2013, will allow us to grow our Digital business significantly.
Whilst we are mindful of the challenging economic backdrop we are comfortable that performance is in line with the Board's expectations for the full year."