A run of favourable sporting results helped Ladbrokes to increase revenues beyond £1 billion in 2012 and set profits soaring.
The bookmaker achieved total sales including cash generated from high rollers of £1.08bn last year 11.1% higher than achieved in 2011 with pre-tax profits coming in 49.1% ahead at £200.7m.
The company said it had enjoyed a strong UK retail performance in the fourth quarter which had helped underpin an overall annual operating profit for the division of £180.7m 18.6% ahead of the previous year.
Profit per shop was up for the third consecutive year, by 15.7% to £82,000, and Ladbrokes said it expected to open another 100 new outlets in the UK this year, on top of the 2,700 sites in the UK, Ireland, Belgium and Spain.
Gaming machine revenues have been a big driver of growth in the industry but Ladbrokes warned it expected rates to slow as the market becomes more competitive and the effect of a new 20% gaming duty.
The firm’s digital division, which had suffered a series of technological setbacks during the year which hampered its build out, made an operating profit of £31.8m in 2012, almost 40% lower than the £52.4m achieved in 2011.
The problems in the digital division are believed to have led to the departure of product director Richard Ames back in August.
Ladbrokes said progress was being made in developing its new digital platforms with the new sportsbook website coming online and the mobile offering expected to go live in the second quarter of this year.
It also said the acqusition of Betdaq would allow it to differentiate its online offer and provide a one-stop-shop for customers.
Chief executive Richard Glynn said: “We are continuing to transform Ladbrokes, with the resilience and reinvigoration of the UK retail estate driving another year of growth in profit per shop.
“In digital, after a delay during 2012, we will complete the roll out our new of our sportsbook and mobile platforms and look to improve our capability around customer relationship management.
“We expect these developments to drive growth in digital revenues and earnings, particularly during the second half of the year.
“Whilst we have benefitted from favourable sporting results, particularly in football, during the latter part of 2012 and early part of 2013, we are encouraged by the underlying growth in sports betting margins and expect to see a sustained improvement, with further trading developments planned throughout the coming year.
“Economic conditions remain challenging and we are mindful of cost headwinds, particularly in UK retail from increased machine taxation and horseracing picture rights.”