Exclusive: Ladbrokes CEO Glynn issues rallying call
Internal memo to senior management states struggling operator "simply cannot afford to miss expectations"
Under pressure Ladbrokes chief executive Richard Glynn has issued a rallying call to senior management, claiming recent criticism of the company had undermined the hard work of employees and labelling the media coverage as “tough” but expected.
The CEO also underlined the importance to deliver to the revised expectations for the year before delivering growth in 2014. “We simply cannot afford to miss expectations. If everyone hits their own targets, that will not happen,” Glynn said in an internal memo sent yesterday and seen by eGaming Review.
The memo comes after the operator issued its third profit warning of the year last week as digital profit forecasts were slashed in half.
And Glynn told senior management that hard work was required to turn things around. “What was clear in April, when we were perceived by many as having ‘cracked it’ was that we were not yet worthy of that accolade. Similarly, we do not deserve the current brickbats,” he said.
“My primary concern, however, is not how the media regard me, but how our colleagues regard the company they work for. Confidence in Ladbrokes may have been dented but our people have every reason to remain proud of our brand, our products and the customer service we provide every day. For the media, the picture is black and white: either our results get better or we face major change.”
Glynn took responsibility for the operator’s recent poor performance and said he remains confident the company can turn things around.
“For us, we know we are on the right track,” he said. “The best response is to over-achieve in every respect and thereby recover our confidence, momentum and winning ways.”
Glynn has come under increasing pressure as Ladbrokes’ digital performance has continued to worry analysts, with company chairman Peter Erskine reportedly giving him until the middle of next year to turn things around.
The chief executive clarified how an executive committee, consisting of Nick Rust, Damian Cope and former William Hill international and strategic projects director Jim Mullen, who joins the company on 25 October, will be responsible for delivering “what’s needed across our products and platforms to each of the profit and loss streams”.
“The benefit of this new operations council is that it will identify and promote synergies between our commercial divisions, rather than them existing as silos,” Glynn said. “This approach gives absolute clarity of accountability and responsibility for all areas, and a simple structure to ensure joined up thinking,” he added.