Strategy and Vision

Overall

Overal

Ladbrokes is focused on long-term growth opportunities in betting and gaming in the UK and increasingly in the global market. Our core strategy is based upon three key elements. Firstly we will continue to invest in our shop estates to generate growth by offering the best experience to customers. Secondly we will build on the expansion of our online business through continuous product and service innovation and through targeting key international markets. Finally we will apply our leading brand and the skills and experience of our management team to expand the business into new territories, initially in Europe with a focus on Italy and Spain, and later in Asia where we already operate a consultancy in China with the Beijing Sports Lottery.

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European Retail

Shop Exterior Ladbrokes' shops combine the most recognised betting brand with leading edge technology, excellent staff service and key high street locations. During 2008, Ladbrokes will focus on maximising the opportunities available to grow gross win, whilst continuing to place significant emphasis on achieving cost savings. 

The introduction of winter evening opening across more than 95 per cent of UK shops has been enhanced by additional evening betting content for customers, including east coast US racing, live and exclusive greyhound racing content from Ladbrokes’ greyhound tracks and more virtual content. A greater range of betting opportunities than ever before is now screened in UK shops, including more exclusive high quality content than Ladbrokes’ competitors.

All Fixed Odds Betting Terminals (FOBTs) were upgraded to dual screen B2/B3 Gaming Machines during Q1 2007 and Amusement With Prizes (AWP) were replaced with the same dual screen machines by October 2007. As well as significantly improved reliability across the machine estate, the new B3 content (£500 jackpots) now represents around 50 per cent of all gaming machine transactions.

Ladbrokes became the first bookmaker to launch a customer loyalty scheme in June 2008 throughout our 2,100 shop estate in Britain.The OddsOn! Card can be used to bet on-line, over the phone, via text message or on Ladbrokes' interactive TV services at Sky Active or Virgin Media.

The acquisition of the 54 shop Eastwood chain in Northern Ireland was completed on 6 February 2008.

The newly re-regulated Italian betting market presents a good opportunity for Ladbrokes. During 2007, 13 existing betting shops were acquired for a cost of £16.7 million, giving a total of 17 acquired shops by the year end. These shops traded in line with our expectations during 2007. Ladbrokes is now represented in the major cities of Rome, Milan, Turin, Naples and Genoa and since the year end has completed the acquisition of a further eight shops around Turin and Vicenza.The rollout programme for the 142 new Bersani licenses continues, following the license award in March 2007, with the first shop and corners opened in December 2007. Whilst finding premises for new licenses remains challenging, they are scheduled to be opened throughout 2008.   

In Spain, Ladbrokes has applied for an operating licence in the Madrid region with our joint venture partners, Cirsa Slot.   


 

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International

Happy PoolsOur international development effort has focussed mainly on opportunities in Asia, particularly in China, Vietnam and Taiwan.Whilst Ladbrokes was unsuccessful in its bid for the Taiwanese sports lottery, developments continue in China and Vietnam.

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Remote Betting and Gaming


eGaming

Ladbrokes is now one of the world’s most profitable online betting and gaming operators. Sportsbook growth is driven by continued expansion in the product offering including betting in play, video streaming and other sports content. Our new UK sportsbook was launched for beta testing at the end of 2007 with encouraging initial feedback and full launch is scheduled for 2008. Further localisation of our international offering is also a focus, particularly in the key Nordic countries where new sportsbooks were launched in February 2008.

2007 saw continuous improvements and growth in Ladbrokes’ mobile sportsbook and gaming offerings and further developments are planned for 2008. Compared with the internet, wireless revenues are small but are growing quickly and Ladbrokes is positioned to take advantage as consumer acceptance of the technology grows.

 In partnership with News Group Newspapers, Ladbrokes launched the Sun and News of the World betting gaming sites in 2007.

eGamingThe popular Ladbrokes poker cruise took place early in 2008 and the coming year will see further developments to the site including multi currency tables and a full launch of the new 3D application, complemented by a more aggressive affiliates programme.An increase in active casino customers was driven by online marketing activity and continual improvements to our proposition including new products and further foreign language versions of the ‘1-click’ suite of casino games. In 2008 a more rapid rollout of new products is planned, combined with geographically targeted new customer acquisition campaigns.Games net revenue benefited from the new Bingo product and supporting TV advertising campaigns together with a number of other new product launches during the year (including Deal or No Deal Jackpot and Who wants to be a Millionaire Bingo). 2008 will see enhancements to Ladbrokes’ bingo service, additional unique branded content and focus on localisation and affiliate growth.

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