Published on 29th April 2015 by Becky Mosley

Ladbrokes has announced a fall in earnings as figures for the first quarter of 2015 showed a significant slump from the previous quarter. In the first three months of this year, the betting company’s profit before earnings and taxes was £14.3million, down from £18.4million at the end of 2014.

 Disappointing Figures

New chief executive Jim Mullen has said that he will bring forward a strategic review to turn around what he called “disappointing” figures.

 Loss of High Stake Customers

Ladbrokes was hit by a series of sports results said to be more favourable to punters as well as a weaker Cheltenham meeting and a significant loss to a small group of high-stake customers. Other factors included the UK point of consumption tax, increased duty on gaming machines and withdrawal from unregulated digital markets. “In Q1 many of our customer metrics are encouraging but results have favoured customers and profits are materially down,” explained Mullen. “These results demonstrate the challenges we continue to face. We need to change the way we run the business, build scale, primarily in digital and respond faster to the customer and changes in the market place.”

 Need For Change

Mullen who has only been in charge since the beginning of the month, plans to change the way the business is run and aims to place more focus on boosting the digital side of the company. Outlining his immediate plans, Mullen said: “I will complete my review of the wider business quickly and I will present some of the principal changes that I intend to make, in June, earlier than planned.”

 More Recreational Customers Needed

He continued: “Ladbrokes hasn’t grown its recreational customer base – we need more of the customers coming in to put down £5 each way on a horse. It’s great to have high-value customers but it does mean we take a bigger hit when we lose.

 Lots To Be Done

“I believe strongly in Ladbrokes. We have laid solid operational foundations but there is still a lot to be done.”