Ladbrokes is one of the largest gambling companies in the UK and was founded well over 100 years ago, adopting the name in 1902. Though it hasn’t always been a betting shop – they were only legalised in the sixties – it has been a large part of the British high street and the gambling scene for several generations.
However, the company is now facing rough times and reported a 28 per cent drop in profits. It has also reported that the recession and fears of greater unemployment have turned casual gamblers away and lead to an overall reduction in spending.
On top of this, Ladbrokes have also felt the pinch from a number of betting results that went in favour of punters after Manchester United and Chelsea both won matches and the Premier League saw less draws than usual overall.
There is good news on the horizon for the company though, as their cost cutting from last year has started to pay off. The world cup is suspected to be the biggest ‘leg up’ for Ladbrokes profits this year however, especially after heavy snow in January and February meant that over fifty horse races in the United Kingdom had been cancelled.
Chris Bell, the CEO of Ladbrokes for nine years, has recently stepped down the company is looking for a new candidate with both online and retail experience to take over the post. They are said to be looking outside of the gambling industry to find the right candidate.
Ladbrokes has also reduced staff hours, introduced pay freezes until 2011 and could well be closing one of its largest call centres in Liverpool. Despite this however the company plan to open around fifteen new shops in the UK this year as well as hiring new people to staff them.