Ladbrokes suffers worst Cheltenham Festival in memory

21 April 2016

Bookmaker Ladbrokes has stated this promotion code year's Cheltenham Festival was its "worst in living memory".

All bookmakers were struck by a string of favourites winning at the celebration, but Ladbrokes likewise argued that competitors were providing bets at levels that did not make business sense.

Ladbrokes likewise confirmed that it has a ₤ 3m liability if Leicester City win the Premier League.

Despite this promotion code, the company said it had actually seen a motivating start to the year.

Revenue was more than 10% greater.

Chief executive Jim Mullen said: "At Cheltenham we were advised of the intense competitors with offers and pricing at levels which, in our view, deserted bookmaking principles.

"We competed difficult however refused to pursue unsustainable strategies."

He told the BBC gaming was for his clients, not his organization: "I've always said we're in the gaming organization, we don't gamble ... I thought Cheltenham was a race to the bottom."

The business stated the Grand National winner, Rule The World, which was a 33/1 shot, provided a welcome contrast to Cheltenham.

Ladbrokes said it was "confident" that its outcomes would be in line with expectations.

'Recreational punter'

Last year Ladbrokes revealed strategies to combine with its smaller sized rival, Coral.

UK competitors authorities are currently looking at the offer.

Steve Clayton, analyst at Hargreaves Lansdown stockbrokers, said the current trading statement from Ladbrokes was encouraging, however the genuine issue was whether the merger with Coral would be allowed: "A merged Ladbrokes and Coral will have a dominant retail position, even if lots of shops need to be sold.

"We anticipate considerable expense saving will be possible because there will be large areas of overlap and unneeded duplication of functions throughout the combined business."

Ladbrokes is pursuing a different method to that of its rivals by concentrating on consumer service and the occasional punter, who will not always hunt for the very best chances.

Mr Clayton said: "The bookie's technique is to concentrate on the 'recreational punter', simply put the still soft and malleable, unhardened gamblers out there.

"These people do not understand what the right chances must be, so it is simpler to build a fat win margin into the bookie's terms."