Profit at Ladbrokes' Irish shops rise 21% in 2008

Bookmaker Ladbrokes' Irish business reported a 48 per cent rise to €103.5 million (£91.5m) in its winnings from punters last year due to an expanded network of outlets.

The company said profits at its Irish shops rose 21 per cent to €27.6 million (£24.4m) during the 12 months to December 31st.

However, on a like-for-like constant-currency basis, the company said gross wins in Ireland were down 8.8 per cent, “reflecting the weak economic conditions” and the high number of horse-racing meetings in the Republic that were abandoned.

Ladbrokes' grew its shop numbers in Northern Ireland last year due its acquisition of Barney Eastwood's 54 shops in the North, a deal valued at €181 million, the addition of six McCartan shops in April and two new licences. It is now the largest bookmaker in the North with 78 units.

Over the year it added 12, and closed three, shops in the Republic where it operates 208outlets.

As a result of the increase in shop numbers operating costs in Ireland rose 59.3 per cent to £58.8 million, the London-listed company said in a statement today.

On a group-wide basis, Britain's biggest bookmaker reported full-year operating profit slightly ahead of market expectations but said trading in the current year had been affected by race cancellations.

Ladbrokes, which has over 2,600 betting shops, said operating profit, excluding bets by high stakes gamblers, increased by 0.9 per cent to £243.8 million.

That was just ahead of the market consensus of £240 million, based on a survey of 19 analysts by the company.

Gross win - total bets minus payouts - increased by 11.1 per cent during the year to £1.14 billion, excluding bets by high stakes gamblers.

High rollers who place five figure sums on individual bets contributed £80.1 million to operating profit during the year.

Ladbrokes said the first six weeks of 2009 had been affected by bad weather-related cancellations. Gross win since the year end, excluding high rollers, was 1 percent up on the previous year.

Ladbrokes maintained its final dividend at 9.05 pence, making a total dividend for the year of 14.15 pence.

Additional reporting Reuters