Ladbrokes Axes Senior Managers, Sees 7 Percent Profit Loss
“In recent times, the strength of our brand has diminished. We feel the need to regain our primacy.”
Those are the comments made by Ladbrokes CEO Richard Glynn, who took charge of the century old London bookmaker back in April and is determined to ensure his company survives today’s more competitive environment.
Much effort is needed however as Ladbrokes witnessed a 7 percent dropoff in profits, mostly due to horse racing losses. This summer’s Royal Ascot resulted in significant losses for most bookmakers, not just Ladbrokes.
Diluted earnings per share rose 35.5 pence, up from 15.1 pence, reflecting a £90m VAT refund announced earlier this year, according to the Financial Times of London.
Ladbrokes is no doubt one of those companies hoping that the gambling climate in the U.S. changes. It had considered entering the American market just prior to passage of the Unlawful Internet Gaming Enforcement Act (UIGEA) in late 2006. All European publicly traded companies were forced out of the U.S. market at that time.
Congressman Barney Frank, who sponsored the bill that passed in a subcommittee last week, is relatively confident that online gambling will become legalized in the United States by year’s end.
“If a whole lot of people who resent being told by the government that they can’t do what they want to do – they need to call their Representatives and Senators and then it (the legislation) will pass this year,” Frank told Gambling911.com this week.
He warned, however, that there are many obstacles still standing in the way. Specifically he warned that the opposing Republicans have filibuster power in the Senate.
In the meantime, Ladbrokes will continue to concentrate on its European business.
On Thursday, Glynn announced the departure of various senior level managers including the head of its Online Marketing Department.
The Wall Street Journal points out that Ladbrokes’ problems were crystallized by the resurgence of rival William Hill, a company which stole a march while others dithered.
“William Hill has offered up excellent pressers these past several months, some of which were just too good to pass up for publication on the Gambling911.com website,” points out Payton O’Brien, Senior Editor of Gambling911. “But William Hill also has a reputation for being conservative when it comes to ad spend so Ladbrokes has plenty of wiggle room if they are seriously committed to marketing online.”
Aaron Goldstein, Gambling911.com
