Poll results: Ladbrokes turnaround will be end of 2014 at best

Investors in Ladbrokes will have to wait until the end of 2014 for a turnaround in its online business, if the improvement arrives at all, according to eGaming Review readers.

This week’s poll asked how long it would take for the UK operator to reverse the fortunes of its ailing online arm, which reported a 28% fall in digital profits in its interim results last week.

Digital operating profit for the six months to June 30 dropped to £10.8m, with all verticals except sports showing decline and casino, poker and bingo falling 6.8%, 25% and 15.5% respectively.

CEO Richard Glynn said the company would begin to benefit from its long-term partnership with Playtech early next year, a deal which sees the Israeli software supplier take control of Lads’ marketing and egaming operations.

It has also launched its Ladbrokes Israel office to focus on restoring growth to the digital division and already has 60 staff in the new office with a headcount of 100 expected by the end of the year. Last month it launched its first Playtech product in the form of a Vegas casino tab featuring live casino, slots and table games across online, mobile and tablet.

“We aim to finalise the integration early in 2014, thereby enabling significant growth in earnings,” Glynn said.

Just 14% backed Glynn’s estimate of early next year, while some 40% of respondents said Playtech’s influence would take until at least the end of 2014 to begin seeing solid online revenue growth.

However the majority (41%) of readers were even more pessimistic, claiming the Playtech deal was “too little too late” to improve the fortunes of Ladbrokes’ online business.

Three per cent said results would begin to improve before the end of this year.