Ladbrokes' recreational focus boosts Q3 revenues 48%

Ladbrokes’ digital revival continues to gather pace with the operator this morning posting a 48% rise in Q3 net revenues, including a near doubling of its Australia-facing business.

Net revenues from its Ladbrokes.com and exchange divisions grew by a third during the three months to 30 September, with sportsbook and gaming up 48% and 24% respectively.

Despite gross win margin improving by 0.9pp to 7.7%, the firm managed to record its 11^th consecutive quarter of staking growth – up 26%, predominantly driven by a 36% rise in actives.

In Australia, on a local currency basis, staking grew 51% and revenues increased by 90% on the back of actives growth of 43%.

Ladbrokes CEO Jim Mullen said the results were proof the firm’s focus on the recreational punter was paying off and praised staff as the firm neared its merger with Gala Coral, which is expected to complete next week.

“These results have been achieved by a group of colleagues whose commitment to delivering Ladbrokes’ Plan A has been all the more impressive given the ongoing work towards completion of our merger with Coral.

“Following our agreement to sell 359 shops subject to CMA approval, we are close to completion of the deal and look forward to the opportunities it will bring to customers, colleagues and shareholders.”

Ladbrokes’ share price was up almost 3% to 141.80p after early morning trading.