UK bookmaker Ladbrokes Plc said full-year profit dropped 63 per cent as customers stayed away from its betting shops in the recession.
Net income fell to £74.4 million, or 9.9 pence per share, from £200.7 million, or 28.3 pence, the company said in a statement today. Revenue declined 10 per cent to £1.03 billion.
Ladbrokes has about 2,100 betting shops in Britain, where unemployment claims hit the highest level in January in almost 13 years. Pretax profit in UK shops dropped 28 per cent to £134.5 million. Internet gambling profit on that basis declined 16 per cent to £46.1 million.
"Last year was one of the toughest in the last 16 years, since the National Lottery started," chief executive Chris Bell, who is stepping down this summer, said in a conference call with reporters.
Ladbrokes also announced today a partnership with Worldspreads Group to provide financial spread betting on Ladbrokes' website. The arrangement could contribute in the "small millions" to earnings before interest and tax, Mr Bell said on the call.
In its third quarter, the company said profit on soccer wagers was hurt after too few games ended in draws.
"In the third quarter, our customers had a good and long-running winning streak," Mr Bell said.
Bloomberg