Ladbrokes looking to boost online, mobile betting business
Ladbrokes PLC continues to have a difficult time getting its online operations right, resulting in the departure of its head of digital operations after a disappointing result for the first six months of the year.
The profits from online and mobile gaming were $23.4 million, half of what the British bookmaker reported for the first six months of 2011. Overall, first-half 2012 operating profits were $167.5 million.
"The disappointing nine-month delay in the full launch of the new website (and subsequent mobile relaunch) overshadows a decent retail performance," said James Wheatcroft, an analyst with Jefferies, in a research report Wednesday.
Wheatcroft expected a "step up in marketing spend" from the current 25 percent of net gaming revenue in order to maximize the impact of the website.
Ladbrokes paid $3 million in January to acquire 65 percent of Stadium Technology Group, a Las Vegas-based supplier of software and in-game betting applications for sports book operators. The company has an option to buy the other 35 percent of the company.
Wheatcroft said Ladbrokes "should trade at a discount to William Hill, until clear online progress is demonstrated."
He said he expects that to take up to a year.
Contact reporter Chris Sieroty at csieroty@reviewjournal.com or 702-477-3893.
