Chips are down for Ladbrokes as profits drop 66%

Richard Glynn, the chain's boss, has a few months to hit six key 'milestones'. These figures aren't encouraging.

by Rachel Savage
Last Updated: 01 Jun 2015

Looks like luck is running out for Ladbrokes chief exec Richard Glynn. The boss of the UK’s second largest bookmaker admitted this morning that pre-tax profits for 2013 had fallen to £67.6m, a 66% drop on the £200.7m Ladbrokes posted in 2012. He faces the axe if he doesn't transform the business in the next few months, Ouch.

The bookies said profits were dragged down by £51.6m of ‘exceptional costs’ from moving to online gaming software from Playtech, the company that helped Ladbrokes’ rival William Hill grow its successful internet business. However, revenues at its betting shop chain were also down 5.5% to £1.1bn.

Glynn called the results ‘disappointing’ - which, considering he was given an ultimatum by investors two days ago to hit six key ‘milestones’ (mainly related to progress online) by the summer bet-fest that is the football World Cup or face the axe in August, was something of an understatement.


The chief exec tried his best to remain chipper. ‘We made real operational progress which has continued into this year.  We remain confident about the direction of the business and the momentum we are creating.’

Nonetheless, after a turbulent 2013 which saw the chain shock markets with no fewer than four profit warnings, Glynn had better hope that Labrokes' latest bet with Playtech pays off.

Find this article useful?

Get more great articles like this in your inbox every lunchtime

How to find the right mentor or executive coach

One minute briefing: McDonald’s UK CEO Paul Pomroy.

What you don't want to copy from Silicon Valley

Workplace Evolution podcast: Twitter's former EMEA chief Bruce Daisley on Saturday emails, biased recruitment and...

Research: How the most effective CEOs spend their time

Do you prefer the big, cross-functional meeting or the one-to-one catch-up?

6 rules for leading a remote team

Our C-suite panel share their distilled wisdom.

Showing vulnerability can be a CEO’s greatest strength

Want your people to bring their whole selves to work? You first.

A mini case study in horizon scanning

Swissgrid has instituted smart risk management systems for spotting things that could go wrong before...