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Telling it like it is.....
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Ladbrokes corrects Irish results
Ladbrokes has issued a correction notice for its Interim Results for the half year ended 30 June 2008. The Group noted that its "Other European Retail - Ireland" section of the Business Review contained two errors regarding its like for like gross win and cost figures. The text stated that like for like constant currency gross win increased by 1.7% whereas it should have read declined by 4.4%. The text also stated that like for like costs, excluding Turf TV, were up by 2.9% whereas it should have read 5.7%. No other changes were required to be made to the Group's disclosure in the Interim Results for the half year ended 30 June 2008. Ladbrokes is now the largest operator in both Northern Ireland and the Republic of Ireland. The acquisition of the 54 shop Eastwood chain in February and six McCartans shops in April increased our scale in Northern Ireland to 76 shops as at 30 June 2008. The acquisition of a further seven shops in the Republic of Ireland brings our total there at 30 June 2008 to 206 shops. These acquired shops are all rebranded and are trading in line with our expectations. Overall gross win in Ireland increased by 45.1% to £47.6 million reflecting the benefit of the acquisitions and favourable exchange rates. Like for like constant currency gross win declined by 4.4%. During the period under review operating costs in Ireland rose by 59.2% to £28.5 million (H1 2007: £17.9 million) principally due to the increase in shop numbers, with like for like costs, excluding Turf TV, up by 5.7%.
Profits down at Blue Square
Blue Square, Rank Group's interactive gambling business has said that increasing competition in its core UK sportsbook and bingo markets has held back first half revenue and profit. The company said that whilst revenue grew by 3.1% to £27.0m, the company had experienced a marked deterioration in performance in the second quarter as average stakes declined on both sports betting and games. Operating profit of £5.3m was 3.6% below the level achieved in the first half of 2007, with a £1.1m saving on gaming duty being offset by start-up costs relating to the business's non-UK operations. The company said that first-half revenue from its sportsbook had declined by 14.4% to £7.7m on lower average staking levels and a marginally weaker win margin. A clear sign, if one were neeeded, of the credit crunch starting to impact upon the online betting world.
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Swedes in Virtual Racing deal
Sweden based game developer Solidicon AB has announced that it has entered into an agreement with Net Entertainment AB, a company providing games and gaming systems to the online gaming industry. Solidicon will be providing Net Entertainment with 3D graphics technology and other game components necessary to build high quality virtual racing games. Solidicon has developed a technology to port its revolutionary real-time 3D game content from its land based gaming platform to the online gaming environment. The first game title from Net Entertainment to see the light online is Golden Derby™, a virtual horse racing game featuring a realistic 3D environment, five betting modes which are familiar to horse racing punters, and exciting odds ranges plus a Jackpot pool. P-A Gustafsson, Solidicon’s CEO commented, “With increasing competition on the online gaming market, we expect players will demand more from the games in terms of content, quality and innovative concepts. The uniqueness and quality of the Golden Derby™ product will set new standards and point the direction of what to expect from Net Entertainment and Solidicon in the future.”
Betting in Ireland
Irish leaning bookmakers were left counting the cost after Padraig Harrington's victory at the US PGA championship.
Paddy Power revealed that €3m had been collected by punters after his win, whilst Ladbrokes said that they had paid out just under €2.5m to their irish customers. Dundalk based Boylesports reputedly paid out almost €1m, whilst William Hill allegedly lost €963,000. Paddy Power, Ladbrokes and William Hill had all offered up odds of 20/1 on the irish golfer winning another major title, following on from his recent victory in the British Open. One punter walked away with €60,000 following a €2,500 bet each way at 18/1 with Boylesports. Paddy Power told the irish Independent that they had now paid out close to €5m on Harrington in the last month alone; "We may have dodged a bullet at the British Open, but we've got it right between the eyes this time -- every second bet was on Harrington," he said.
Bookmakers lose Turf TV Case
At the High Court, Mr. Justice Morgan has handed down judgment in favour of Amalgamated Racing Limited (AMRAC), Alphameric's joint venture with Racecourse Media Services Limited, and its shareholders in the case brought against them by the Bookmakers' Afternoon Greyhound Services Limited, Done Bros (Cash Betting) Limited, Ladbrokes Betting and Gaming Limited and William Hill Organization. The ruling allows AMRAC, through its Turf TV facility, to market and sell the television and data rights of 31 of the UK's most prestigious racecourses. Mr. Justice Morgan has reserved judgment on a counterclaim brought by AMRAC and a number of the racecourses alleging that the bookmakers had colluded unlawfully to boycott the new service and to withhold sponsorship from races.
Betting on the Olympics
It is anticipated that up to £33 million will be wagered on the Olympics, with Ladbrokes, who are pricing up every event, more than 3,000 betting markets in total. A most popular bet sees the Jamaican Usain Bolt trading at 11/8 to top the podium in the 100 metres, while the UK's Paula Radcliffe is 5/1 to win the women's marathon and 6/4 to snatch a medal.
