Ladbrokes suffers worst Cheltenham Festival in memory

21 April 2016

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

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

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

Despite this, the business stated it had seen a motivating start to the year.

Revenue was more than 10% higher.

President Jim Mullen stated: "At Cheltenham we were advised of the intense competitors with deals and prices at levels which, in our view, abandoned bookmaking concepts.

"We competed hard but declined to pursue unsustainable strategies."

He told the BBC betting was for his consumers, not his service: "I've constantly said we remain in the betting business, we don't bet ... I believed 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 bet9ja's welcome offer contrast to Cheltenham.

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

'Recreational punter'

In 2015 Ladbrokes announced strategies to merge with its smaller sized competitor, Coral.

UK competition authorities are currently looking at the deal.

Steve Clayton, analyst at Hargreaves Lansdown stockbrokers, said the current trading statement from Ladbrokes was encouraging, but the real issue was whether the merger with Coral would be permitted: "A merged Ladbrokes and Coral will have a dominant retail position, even if numerous stores need to be sold off.

"We anticipate substantial expense conserving will be possible since there will be huge areas of overlap and unnecessary duplication of functions throughout the combined business."

Ladbrokes is pursuing a different technique to that of its competitors by focussing on customer support and the occasional punter, who will not always hunt for the finest odds.

Mr Clayton stated: "The bookmaker's technique is to concentrate on the 'leisure punter', to put it simply the yohaig code still soft and malleable, unhardened bettors out there.

"These people do not know what the ideal chances need to be, so it is easier to construct a fat win margin into the bookmaker's terms."