Internet gaming profits have dropped rapidly for the industry leader, Ladbrokes. See why and what the future holds for them here, including general industry updates.
One of the internet's largest and most successful online betting websites, Harrow's own Ladbrokes, has suffered a massive decline in profits. According to an audit that the company management recently released, a loss of 34 percent in profits was found for the period of the last four months.
In an official statement, Ladbrokes announced that despite the losses found, the company does not expect a similar situation for the rest of the year. It explained that the new rate of decline is most probably due to the irregular gross win margin that occurred during the Month of March. In addition, added costs due to e-gaming phasing and the extra free bets offered may have also contributed to the decline in profits.
That said, the situation for players at Ladbrokes has been significantly profitable this April 2009. The group win increase for Ladbrokes players has been on a stable 5 percent increase with each year. The figures do not include high-roller players, and are in spite of increased horse race cancellations and a consistently flat group gross win
The total profits earned by Ladbrokes as reached the £25 million mark prior to taxes, non-trading items and tax ,and this is a 62 percent decrease since the previous year. According to the Ladbrokes CEO, Chris Bell, the company still has reasons to brush the loss of its shoulders and continue with its head help high into the following year. This, he claims, is because of Ladbrokes' clever cost control and overall resilience. However, the target for 2010 is unlikely to be reached with the currents losses.