Ladbrokes feeling the heat on internet poker?

Online poker operations at Ladbrokes, probably due to an increasingly competitive European business environment, disappointed investors when the e-gaming division of the gambling group released its interim six month numbers to the end of June this week.

Poker net revenue fell GBP 2.7million to GBP 15.7 million in the face of stiff competition in the UK and Scandinavian regions as active player numbers fell 15 percent to 422 000 and yield per unique active player fell 10.6 percent to GBP 144.

Other e-gambling operations fared better, with increased net revenues over the past six months. Overall gross rose 8.9 percent to GBP 72.5 million from GBP 67 million for the same period last year with unique active players rising 5 percent to 441 000.

Pre-tax profit before non-trading items for the group rose to GBP 161 million from GBP 155 million in the same period last year. Gross win rose to GBP 624 million from GBP 523 million while operating profit rose to GBP 195 million from GBP 151 million, aided by record results from telephone betting (see previous InfoPowa report).

Ladbrokes also announced that its Italian retail business was up and running with 12 shops now trading.

Christopher Bell, chief executive, said the online business continued to perform satisfactorily, and that the company had experienced good growth in its online sportsbook, casino and gaming products to counter the poker performance.

Online sportsbook revenue rose 13.9 percent to GBP 27 million with gross win margin coming in at 7.9 percent. Casino net revenue grew by 14.4 percent to GBP 22.2 million. Games revenue rose 50 percent to GBP 7.5 million.