Ladbrokes was able to exceed its expectations and post better than expected revenue for the first half of 2016. However, despite the results, the company was still unable to turn a profit when it comes to the digital side of things. The better than expected revenue was helped along by several bookmaker-friendly sporting results over the course of the first six months of 2016.
Ladbrokes does well in H1 2016
The first half of 2016, which ended on the 30th of June, saw Ladbrokes report a revenue growth of 12%, climbing to £662 million. This also meant that the company’s operating profit increased by more than 33% to £52.3 million, while the profit after-tax sat at £20.7 million. This compares rather favourably to the £41.1 million loss that the company suffered during the same period in 2015.
Ladbrokes Digital shows the biggest growth
The biggest growth within the company though has to go to the online department, which saw a 41% revenue increase. Sadly, though, this was not enough for the digital side of things to turn a profit, showing a net loss of £9.6 million. The good news, though, is that this is an improvement on the first half of 2015, where the net loss was £11 million.
The improved online performance can be attributed to the Euro 2016 tournament, which helped to drive a 69% increase in Ladbrokes.com’s revenue. This rose to £58.3 million and was the tenth consecutive quarter to show year-on-year growth. This will be good news for Ladbrokes, as hopefully, it won’t take too long for the online department to start showing a profit.
Ladbrokes continued to do well on the retail side of things, with retail revenue climbing 6.8% to £444 million, with profits increasing by 11.6% to £63 million. It’s great to see that so many people still enjoy betting on their favourite sports matches.
