Ladbrokes improves gross win margins.(Breaking news)

Ladbrokes, the UK bookmaker, said group profit, excluding Telephone High Rollers, for the four months ended 31 October 2008 increased by 10%, although the figure was just 3% after adjusting for advertising costs of 3.7m [pounds sterling] in the prior year.

Profit from High Rollers during the period was 17m [pounds sterling] following collection of receivables previously provided for. Excluding High Rollers, telephone betting net revenue fell by 12%.

Group gross win (excluding High Rollers) increased by 12% during the period.

In the UK retail estate, total gross win rose by 5%, led by machine gross win, which was 14% higher. Average weekly gross win per gaming machine was 677 [pounds sterling] compared to 586 [pounds sterling] for the same period in 2007.

Over The Counter (OTC) gross win was flat (down 2% after free bets) but was "significantly impacted by poor results in the last two weeks of the period". Whilst gross win margin was up over the period the amounts staked fell, with lower greyhound activity due primarily to presentation issues since the introduction of Turf TV.

Ladbrokes said UK Retail costs remain tightly managed, with expectations for the full year of 8%.

Ladbrokes gross win in Ireland grew by 52%, including the contribution from the Eastwood and McCarten acquisitions in Northern Ireland. Like-for-like gross win at constant currency was down 11%, reflecting the cancellation of 29 Irish horse meetings and weaker economic conditions in the Republic, as also noted by Paddy Power in its recent statement.