We entered 2014 clear on the operational
milestones needed to allow us to improve
our competitive offer, deliver a successful
World Cup and ensure our retail estate
remained an attractive proposition for
customers and a major source of cash
flow for the business.
Our aim was to deliver the necessary
operational metrics to ensure we could
enter the World Cup match fit and
attract and retain customers to the
Building on operational improvements
through the year and utilising the expertise
in our Ladbrokes Israel team we have
begun to see the customer respond
positively to the new Digital offer
We continue to expand and grow
our international operations
in regulated jurisdictions.
Customers are responding
Successful World Cup
Operating profit excluding High Rollers
down 9.3% (H1: -33.7%, H2: +30.4%) World Cup gross win of £28.0m Dividend confirmed at 8.9 pence per shareGroup net
revenue £m +5.1%
Football offer demonstrates customer appeal
Gaming machines and self service betting terminals drive growth
Retail remains resilient
29.4% growth in football staking Machine gross win +3.6%, SSBTs
amounts staked +618% Gross win per shop at £362,000
remains above the five year averageUK Retail net
revenue £m +1.3%
Strong mobile sportsbook growth
Gaming returns to growth
Australia goes from strength to strength
Mobile Sportsbook staking +110%,
actives +62% Gaming net revenue £80.5m
- improving trends build confidence Australia staking +24.5% (pro forma basis)Digital net
revenue £m +22.9%
At a glance
Our strategic priorities
Retail betting is increasingly a genuine leisure experience in both our core market and overseas. We strive to innovate continually, providing customers with a differentiated product offer, whilst optimising both margin and operational efficiency.
The digital betting and gaming market continues to grow and remains highly competitive. We aim to provide competitive products and digital offers across all digital devices supported by resilient and flexible technology platform.
Pricing, trading and liability management
The utilisation of a proprietary trading platform, enhancement of algorithms and increasing use of automated trading tools enables us to improve liability management and reduce earnings volatility.
Customer and brand
Ladbrokes is still the most recognised betting brand in the UK. We invest to evolve the brand with an emphasis on excitement. The development of our offer, be it in Digital or Retail, is centred around improving the experience of our customers.
The continued evolution of tax and regulation is a key influence on the development of our business. Ladbrokes is playing a leading role in ensuring that the Government and all regulatory authorities fully understand our commitment to responsible gambling and our significant contribution to the economy, employment and taxes.
2014 was a year in which the strength of the ladbrokes brand began to be fully matched by a competitive offer.Read more
We entered the year believing that the first half would all be about operational delivery and the second half would be about growth.
Chief executive's review
Telephone and High Rollers
In h2 2013 we committed toRead more
undertake and complete a major
operational restructuring in
time for the 2014 world cup
in order to ensure ladbrokes
was competitive and could
return to growth in h2 2014.
2014 saw the operationalRead more
focus in H1 lead to
Risk management process
We have adopted an integrated
federated and proactive approach
to our risk management and
The effective understanding, acceptance
and management of risk are fundamental
to the strategy of the Group and what
could materially affect the ability to
achieve strategic goals.
Fair play is built into the wayRead more
we do business at Ladbrokes.
We are leading the way in
responsible betting and gaming,
having a positive impact
on our communities and
operating with integrity.
The weekend of 11th and 12th of January sees the top half of the
Premiership table beat the bottom half combined with only one
draw in 20 fixtures of the top two English leagues. It starts a bad
run of football results and three weekends alone see us lose
£10.5 million as customers benefit from the most backed
teams all delivering.
As ever the Cheltenham Festival saw good business with over £40m
being staked. A good Gold Cup day rescued the overall result of the
Festival with Lord Windemere at 20/1 being the stand out surprise
result in the main race. The most profitable race of the week went to
the Champion Hurdle with Jezki seeing us profit to the tune of £1.4m.
Over 4M bets placed on Grand National
The Nation's race saw over four, million bets struck on
the Grand National. Luckily not too many customers had
seen Pineau De Re at 25/1 on the race card and it was
another year when the Grand National delivered a result
that favoured the bookmakers.
Over 250,000 bets placed
on World Cup final
The World Cup kicks off and the tournament starts in a bad way for the
bookies as favourite after favourite triumphs. But once the knock-out
stages start, fortunes change. The World Cup Final brings an end to the
World Cup tournament which saw over eight million bets staked. A nil-nil
draw after 90 minutes and the winning goal by a substitute means that
Ladbrokes finishes the tournament off with a very good result. The match
itself was unsurprisingly the highest turnover match of the year with
over 250,000 bets placed and £2.75m staked.
Rory McIlroy inflicts a summer of pain for bookmakers by adding the
Open to his BMW PGA win. It makes the Open the worst result of any
golf tournament in recent history. His golden summer saw a WGC title
and the USPGA added in five weeks and saw us pay out circa £4m.
Smiling along with Rory was his Dad, who had bet £200 at 500/1
ten years ago that his son would win the Open within ten years.
St Leger results
Favourite, Kingston Hill wins the Ladbrokes St Leger at 9/4 and turnover and once again a flat festival ends up favouring the customer with us losing £500,000 over the festival, primarily driven by a £400,000 loss on the St Ledger itself.
Scotland votes No and the Scottish referendum enters history as the most bet on political event in our history with £2.5m staked. For many it was a case of the heart ruling the head with Yes attracting the most money meaning the No vote was a profitable result for us.
The race that
stops a nation
The race that stops a Nation, The Melbourne Cup, does not work
out too well for Ladbrokes Australia with the pre-race favourite
winning at 8/1 and the ever popular Red Cadeaux finishing second
for the third time.
However the Spring Carnival, with 95 group and listed races across
109 meetings and 63 race days, sees our Australian business come
out on top overall.
The Boxing Day football fixtures prove a Christmas Bonanza
for customers as just three draws from the top three English
divisions (none of which are in the premiership) and 17 of
the most backed teams winning meant we lost over £8m.
The day is reported as the worst in living memory.
Consolidated financial statements
Company financial statements