Ladbrokes Falling Profits Symbolic of Failing Economy
It was very bad news for the United Kingdom's largest bookmaker. Ladbrokes on Thursday reported a 28% fall in profits in 2009.
Pre-tax profits for the year to December 31 fell to £191.3m from £265.6m in 2008.
Chairman Peter Erskine issued the following statement:
"2009 was a challenging year for Ladbrokes. We were impacted by the deteriorating economic environment and the industry-wide issue of lower third quarter gross win margins. We are concentrating on building on our strengths (the Ladbrokes' brand, bookmaking expertise, innovation and creativity) and, importantly, are relentlessly focused on execution and delivery."
"We recognise the likely challenges from rising unemployment and more general consumer spending headwinds. However, Ladbrokes continues to be a profitable and cash generative business with strong positions in markets that remain attractive and we have a strong platform to continue to grow our online business. We have strengthened our balance sheet and are taking decisive cost actions that will leave Ladbrokes well positioned when the upturn comes."
Jagajeet Chiba, Gambling911.com
