Despite a great World Cup in Brazil for the British bookmaker Ladbrokes, they saw their profits being cut in half in the first six months of 2014, compared to the first six months of 2013. Overall the company made £27.7 million in profits, which was a 49.7% decrease year-on-year. The decrease in profits was expected by Ladbrokes, who wanted to integrate operational improvements for long-term growth.
"We have made substantial progress. We now have the products, the platforms, the people and the brand in place to deliver," CEO of Ladbrokes, Richard Glynn said.
With the switch over from Microgaming to Playtech, the integration period was too long for many customers to bare as well as some who had problems getting used to the new platform. Overall however, Ladbrokes believes that their new solution is more customer friendly and will take their online gambling to a new level.
Furthermore Ladbrokes reported that they have closed 46 betting shops who were not performing as they should profit wise, almost reaching their goal of 50 shops. More might even be closed after that, as the shops will be heavily monitored to see if they are performing as they should.
Ladbrokes also replaced a massive 9,000 gaming machines with new improved models, which should be able to improve revenues and profits. On the more positive side, Ladbrokes reported to have a 1,100% increase in bets done through mobile devices, showing great growth in that area.