H1 operational objectives delivered
Mobile Sportsbook growth: staking +105%; actives +74% yoy; conversion rates improved by 14ppts
Playtech migration completed; new back office (IMS/single wallet), casino and bingo products
IMS/single wallet delivers improved customer experience and more effective marketing capability
Successful roll out of c.9,000 Clarity machine cabinets ahead of World Cup
SSBT estate grown to 1,750 supporting UK Retail focus on football
Further international diversification: Australia - Betstar acquired and integrated
Good World Cup performance - a competitive customer offer
Group stakes £115.3 million up 22.4%; gross win margin 24.3%
Digital net revenue up 25.9%; sign ups up 48%; actives up 28%
Mobile staking growth up over 1100%; 63% of sportsbook staking
UK Retail staking up 7.9%; gross win margin 27.4%; significant increase in multiples
Spain Retail JV staking up 160%; Belgium Retail staking up 157%
Financial performance - H1 EBIT ahead of H2 2013 consistent with guidance
Group net revenue up 1.6% despite some poor industry wide sporting results
Group operating profit of £56.8 million down 33.7%
Underlying earnings per share down 38.6% to 4.3p
Half year dividend maintained at 4.3p per share (H1 2013: 4.3p)
High Rollers contributed £10.7 million of operating profit (H1 2013: £3.4 million)
Richard Glynn, Chief Executive, commented:
"In the first half of 2014 we successfully delivered all of the planned operational improvements in time for the World Cup. Our offer performed well, delivering a great betting experience for our customers and a good result for the business in a highly competitive market.
We have made substantial progress and while there is more to do there is also much to play for. We now have the products, the platforms, the people and the brand in place to deliver. Ladbrokes today is a far stronger company and well positioned for growth."
