Telephone bets boost Ladbrokes’ profits

Aug 10 2007 by Alistair Houghton, Liverpool Daily Post

BIG-SPENDING punters using Ladbrokes’ Merseyside betting call centre helped the group overcome a fall in profits at its UK betting shops.

The group saw half-year operating profits increase 29% to £195m aided by a three-fold rise at its telephone betting arm after revenues from high-rollers surged to £95.3m from £13.3m a year earlier.

Ladbrokes also said the forthcoming relaxation of restrictions on gambling advertising would be good news for its telephone betting business.

Operating profits at Ladbrokes’ UK retail arm fell 11.6% to £100.9m, reflecting tougher comparisons against the football World Cup in 2006.

Fixed-odds betting terminals, which were fully rolled out earlier this year, helped offset some of the weakness in over-the-counter betting.

Ladbrokes’ telephone betting business increased profits to £63.3m, compared to £16.4m in the same period last year, even though net revenue excluding high-rollers fell £3.9m to £16.3m.

High-rollers get a more personalised service from the company.

Its call centre is housed in the headquarters of Vernons Pools, also owned by Ladbrokes, near to Aintree racecourse.

Some 300 people work there, with around 150 working for the betting business.

Ladbrokes’ proposed deal to sell Vernons to Liverpool-based Littlewoods Pools owner Sportech has been referred to the Competition Commission. A decision is expected in October.

If the deal is given the go-ahead, Vernons staff are likely to leave Aintree to join Sportech elsewhere in the city.

Ladbrokes has said it would then expand its call-centre business at Aintree.

Vernons’ operating profit increased by 28.6% to £2.7m compared to the first half of 2006.

Ladbrokes said the rise was due to more effective marketing campaigns and improvements in customer handling productivity.

Ladbrokes will receive a boost next month when regulatory changes come into force. Opportunities include all year round evening opening of betting shops and £500 jackpot machines, as well as the prospect of broadcast advertising.

Ladbrokes’ chief executive Christopher Bell said: “We are fully prepared for these changes, which we believe will help to drive growth in our core business in 2008 and beyond.”

alistairhoughton