Poll: Has Ladbrokes digital business turned a corner?

Last week Ladbrokes said its digital business had “built momentum” in 2014 after posting a 70% increase in full-year profits compared with the previous year, but how far that momentum can take it is yet to be decided.

Digital net revenues totalled £215.1m for the 12 months ended 31 December 2014, up around 23% on 2013, while operating profits grew from £8.2m to £14m during the period.

Growth was driven by a 21% increase in online sportsbook revenues and the launch of its Mobenga mobile platform in December 2013 saw mobile stakes increase 110% year-on-year, a fact which has convinced the firm to switch its desktop site to the mobile platform later this year.

Ladbrokes gaming revenues have been hamstrung by its drawn out migration to Playtech over the past 18 months, but since completing the switch ahead of last summer’s World Cup there have been some promising signs with 13% growth in casino during H2.

The firm is now confident the “building blocks are in place” to grow its top line in 2014, however, challenges still remain. Poker continues to decline and net revenues fell 57% year-on-year to £1.7m, while bingo was down 13% to £5.2m.

More significantly, the introduction of the Point of Consumption tax in the UK will hit the firm hard, with roughly 95% of Ladbrokes.com business derived from the UK market. The operator has itself conceded that it is unlikely it will be able to post profits this year to the levels seen in 2014.

There will also be one eye on who succeeds Richard Glynn as chief executive with any new man, or woman, likely to bring in new ideas although may not be given the scope to stray too far from current strategy.

With that in mind we ask whether Ladbrokes digital business turned a corner in 2014, or whether the challenges ahead will see the operator hit troubled waters this year. Have your say on the left hand side of the page.