Ladbrokes Falling Earnings a Result of Late Coming to Online Betting
Feb 20, 2012
The British sports betting and gambling powerhouse, Ladbrokes just announced disappointing earnings. Can the company be saved?
When online sports betting and the Internet casinos entered the gambling industry’s landscape, Ladbrokes seemed to fret. The company’s strategy relied on protecting its land-based betting operations, while reluctantly venturing into online casino business.
Ladbrokes also didn’t rush to enter Mobile sportsbooks or casinos, missing the opportunities that iPad or Android technology brought. This led to declining revenues as others now profit at Ladbrokes expense.
As reported by mobile gambling news, company released its earnings with an annual 8.5% drop in profits. The net revenue is still near the 1 billion GBP mark, making it a giant, but one with the ice cracking under its slow feet.
The company, rather than focusing on online sportsbooks acquisitions, opened nearly 30 land-based betting outfits last year, while walking away from such promising acquisitions as purchasing 888 Holdings. The truth is that the revenues of street sport betting shops and casinos are continuously declining,while mobile casino games are on an upward trend.
What prevented further revenue decline are the raising revenues from mobile gambling that Ladbrokes already has. The company’s strategists apparently started to understand what the future of gambling holds and are planning to spend an extra 50 million GBP on online ventures and mobile casino software development.
Time will show if the famous British outlet can still fix its mistakes.
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