The eGaming division of the UK bookmaker increased its profitability by 24% to £55.0 million during 2007, benefiting significantly from the buoyant performance of its online sportsbook and the acquisition in January 2007 of Sponsio, Ladbrokes’ Nordic marketing partner.
The online sportsbook net revenue showed strong growth of 14.7% to £52.2 million, with a gross win margin of 7.2% (2006: 6.4%). For the year, unique active players grew 5.8% to 421,000 and yield per unique active player grew 8.8% to £124.
Commenting on a record profit for the group operations, CEO Christopher Bell said: “Ladbrokes has achieved record profitability of £420.0 million, benefiting from a buoyant performance from Telephone Betting. Following a strong finish to 2007, we have made a positive start to the year. We will continue to develop the business through new products and channels, both in the UK and overseas and will promote our brand and products through TV advertising, whilst remaining vigilant on costs.”
Bell also revealed the company’s 2008 plan for the eGaming division: “Our objective for eGaming remains the achievement of continued profit growth through product innovation and market development, whilst respecting jurisdictional barriers. Moving forward, we intend to increase our investment levels in customer acquisition which will maintain profitability levels in the short term but drive profit growth in future years.”
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