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LADBROKES has been hit by a dramatic 34% plunge in profits after suffering huge payouts on the magnificent sevens of jockey Ruby Walsh's record-breaking Cheltenham and the recent seven-game winning streak of Manchester United.
Britain's biggest bookie said 2009 has so far been little fun.
"We have been doing our brains on football," said chief executive Chris Bell. "Carlos Tevez's back-heel and that late Michael Carrick winner the other night at Wigan meant Manchester United have extended their run of consecutive wins to seven stretching back through April.
"That came after March and Ruby Walsh's seven at Cheltenham [the jump racing festival where the jockey's wins included short odds Champion Chase and Gold Cup favourites Master Minded and Kauto Star].
"And that had followed a terrible January and February when the weather brought the worst run of race abandonments since 1991."
Ladbrokes' big win on the Grand National - when barely backed outsider Mon Mome romped home - has clearly been wiped out by other losses, Bell said.
The City immediately wiped 5% off Ladbrokes shares on the news, down 12¼p to 212½p.
Bell, however, told shareholders to keep faith that it is always the bookie that wins in the long-term
"We do not want people extrapolating the result for the full year on what has happened in these recent months," said Bell.
"Our management has been around a while and we have seen this sort of thing many times. We are still confident of the out-turn for the full year."
Ladbrokes reported an 11% fall in revenues over the counter in its UK betting shops and a fall of 21% in Ireland, where it complained of the high number of well-backed Irish winners at Cheltenham and a weakening Irish economy.
It also reported a 54% slump in business on the telephones while profits from high rollers is down nearly 40% year on year.
It also admitted that weakening economic conditions and the amount it is making per web customer is hurting its internet business.
The one bit of good news is from four video casino games it is allowed in its betting shops: on average each machine in now making £708 a week, up 5%.
Reader views (1)
And I managed to do my bit in terms of destroying Labrokes' profits, having had a cheeky fiver each way on Angel Cabrera to win the Masters...always felt 100-1 was silly odds for a former US Open winner who hits it miles, has a high ball flight and a silky putting touch...
- Mike Bartlett, London, UK, 15/05/2009 12:30
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