Recently Movehut reported a strong half yearly performance from William Hill. The article pointed to a rise in net revenue and operating profits across the spectrum of the company’s multi-channel operation with retail, once again, seeing significant growth.
Now, rival bookmaker, Ladbrokes has released its own interim results which provide further evidence that betting shops continue to prosper while many retailers are struggling and high street commercial properties stand empty.
Ladbrokes has reported a huge 48.9 per cent increase in half year pre-tax profits, with retail making a strong contribution to the company’s performance. In fact, with Ladbrokes online business struggling due to development problems, the importance of its high street presence can’t be overestimated.
Ladbrokes has enjoyed 36 per cent growth in its retail operation over the past two years and chief executive Richard Glynn was quick to highlight its vital contribution. He said; “If you look at our performance, particularly given the dire economic conditions in retail, I think a lot of people would like our performance there. Digital is one element. 80 per cent of our business is retail.”
Ladbrokes currently has 2,127 betting shops in the UK which, together with interests in Ireland Belgium and Spain, contribute to a total commercial property estate of 2,700 outlets. In contrast with many high street retailers, 2012 has seen only two closures which are far outweighed by 25 new openings. With a further 75 new shops expected before the end of the year, the strength of the high street betting industry becomes clear.
In total there are around 8,500 betting shops on UK high streets and some councils have called on the Government to amend legislation in order to make it easier to limit their numbers. Currently betting shops fall into the A2 commercial property class which covers financial and professional services. This places them alongside banks and building societies.
Shadow culture secretary Harriet Harmen shares these concerns and says that the proliferation of high street betting shops is “blighting” some areas. However, the Association of British Bookmakers oppose any attempts to place restrictions on their growth and point out that today’s number is well down on the 15,000 that existed towards the end of the 1960s.
Dirk Vennix, the chief executive of the association said; “There are more betting shops specifically on high streets than there used to be, but this only reflects the fact that bookmakers are modern retail businesses offering a fun leisure product to adults who choose to use it.”
Given the half yearly performance of William Hill and Ladbrokes, it appears that there are a growing number of consumers who are happy to have that choice and that bookmakers are one of the few high street success stories in the current economic climate.
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