Bookmaker Ladbrokes recorded net revenues for its Irish operations which were down 12.8 per cent in the first quarter of 2014
The company attributed the decline in revenue to big payouts on football results.
Ladbrokes also said that over-the-counter amounts staked locally fell by 2.9 per cent compared to the same three-month period a year earlier.
The company, which operates 20 stores in the Republic, said it recorded a positive performance in Ireland from the Cheltenham Festival with year-on-year increases in both gross win and slip numbers.
Ladbrokes, which is Britain's second biggest bookmaker, promised to keep its annual dividend at last year's level despite a big drop in first quarter operating profit. The dividend commitment underlined the company's message that it believed its business would start to grow again in the second half of the year after a series of setbacks that have put pressure on chief executive Richard Glynn.
The company reported operating profit of £18.4 million in the first three months of 2014 - less than half what it earned in the same period a year earlier. In common with other bookmakers, Ladbrokes has been hit by big payouts to gamblers on two weekends when many of the top soccer teams won. It is also having to invest in upgrading its online service to try to make up lost ground on larger rival William Hill.
“Our financial performance remains consistent with our expectations at the time of our annual results announcement in February,” Mr Glynn said in a statement. “We now have in place all of the operational infrastructure from which to drive growth in the second half and beyond,” he added, referring to upgrades to its online and mobile products launched ahead of this summer’s World Cup.
Ladbrokes said it would pay a dividend of at least 8.9 pence per share, in line with 2013. Shares in the company rose 2.3 per cent to 146.8pence in early trading. A familiar sight in Britain’s town centres with 2,300 betting shops,
Ladbrokes formed an alliance with software developer Playtech last year to help serve the growing number of gamblers who bet on sports events through their computer, tablet or smartphone.
Bookmakers have been hit by British government plans to increase taxes on high stakes gambling machines that account for a large slice of their traditional betting shop business.
Ladbrokes said the tax rise would cost it around £19.5 million a year and that it would have to look at further shop closures when it takes effect next year. The company is already closing 50 shops this year to cut costs.
William Hill said last week it would close 109 loss-making shops this year. It blamed the government for increasing tax on the machines, which offer games including roulette, to 25 per cent from 20 per cent.
Additional reporting: Reuters
