O'Reilly leaves Lads as revenue continues to fall
John O'Reilly is to leave Ladbrokes after 18 years and the company announced its half-year figures today.
John O’Reilly is to leave Ladbrokes after 18 years to pursue “new challenges”, the company has announced. He is to step down as a director of the company on 5 November 2010.
Richard Glynn, chief executive, said O’Reilly had made a “massive contribution” to the growth and development of the company, including online, during his time on the Ladbrokes board.
Ladbrokes also announced its half-year figures. Total net revenue has significantly dropped this year, due to a decrease in profits from High Rollers, it said. Net revenue including High Rollers fell from £565.1 million in the first half of 2009 to £500.2m in the first half of 2010. High Rollers’ profit dropped from £58.4m to £8.9m year-on-year.
However, net revenue excluding High Rollers was only 2.4% down from £504.4m in the first half of 2009 to £492.1m. Group operating profit, again excluding High Rollers, grew 5.1% to £103.6m from £98.6m in the first half of 2009.
Egaming operating profit rose this year, from £20.8m to £29.1m. The relocation of Ladbrokes’ sportsbook to Gibraltar in the last quarter of 2009, combined with the football World Cup, boosted sportsbook revenue, which climbed 9.8% to £33.5m, it said.
Poker net revenue fell 15.7% during the period to £10.7m. Ladbrokes said this was due to the general decline in the European poker market and because of the World Cup.
Telephone betting was down 2.2% to £8.9m from last year, as the firm continues to struggle to compete with low tax offshore operators and the shift of customers to the internet.
Glynn said: “The review identified a number of key areas where we have the opportunity to improve our performance. These include a focus on the customer, improving the ‘e’ performance, the brand effectiveness and enhancing the technology backbone of the group.
“I expect these priorities, supported by targeted investment, will deliver customer satisfaction, revenue growth, margin improvement and operational efficiencies over the medium term. I look forward to sharing further detail of our progress in February.”
Ladbrokes’ sportsbook gained a license from French regulator ARJEL last month and is due to launch under the CanalWin brand next month.