The Cause of Recent Changes at Ladbrokes
One month ago, Ladbrokes, the British land based and internet based sports wagering operator announced that the company expects a decrease in its overall profit from its online and digital operations in the first half of 2012.
Now, the company has announced that Richard Ames, the Product Director of the company is going to leave the company. He was appointed in his position in July of last year after the 2nd re reorganization in less than one year.
He joined Ladbrokes seven years ago in 2005 when he was appointed as the Retail Commercial Director. He was then appointed as the UK Retail Managing Director one year after that in 2006.
Two years later he became the director in charge of Ladbroke’s operations in Ireland in September. One year later in January he joined the board of directors of the operator.
According to sources, the operator fired the Product Director who will continue working as a director because of his mishap in a digital strategy that will have tremendous negative effects on the online revenues and profits of the first half of this year.
The company predicts that it will be the worst results in the past ten years. According to reports the company is going to announce that the delay that was caused by this mishap is going to lead to 15 million British pounds profit of the first half of 2012. This presents a 50% decrease from last year’s 31 million British pounds profit.
The Effect on Ladbrokes
Ladbrokes has issued its financial reports this Thursday that covers the first half of 2012. The numbers sadly confirmed the fears that the online digital operations are not as good as they used to be as the performance was disappointing and did not keep up the good performance of last year.
This might be related to the sudden firing or resignation of Richard Ames, the senior manager. The numbers related to the digital section stated the following key indicators:
-The internet poker continued to decline.
-The digital sportsbook margin in May was the lowest one in the past 3 years.
– The profit from the digital operations suffered a 50% decrease from last year’s first half profit that reached 29.7 million British pounds. It scored fifteen million British pounds. This was a much unexpected decrease despite the increase of the net revenue of the company. It increased from 85.7 million British pounds that was achieved in the first half of 2011 to 88.3 million British pounds.
– The expenses of operations reached 16.8 million British pounds. These expenses are predicted to only increase in the second half of 2012.
It was not all bad numbers and news as the number of the active players increase by 21.5 percent to reach 746,000. The number of real cash registers and sign ups also increase by 37.3% to reach 342,000.
According to reports from the management of Ladbrokes, the new changes in the management are going to increase the focus on the digital operations of the company. The players can also expect to be offered with a new collection of games that are provided by top content developers such as Mazooma, Playtech and IGT.