Richard Ames product director at Ladbrokes has left the company it is reported, Britain’s second largest bookmaker, which is set to announce further costly delays to its beleaguered technology platform this week.
The company has already issued a profit warning about its technology division. But Thursday’s half-year results will show delays have eaten even further into the £15m of profits expected from digital- which are less than half the £31m achieved in the same period last year.
Richard Glynn, Ladbrokes’ chief executive, has overseen a series of management changes since joining the company in April 2010. Insiders say morale has fallen to an all-time low, with very little hope of devising a winning strategy that can compete with William Hill, the UK’s leading bookmaker. Last week, William Hill was able to ramp up pressure on its long-time rival by announcing a 23% increase in online operating profits to £68.9m.
Ladbrokes decided to spend £50m developing its own in-house digital technology, a move many in the industry say was its undoing. Almost all other traditional bookmakers team up with industry respected supliers, such as the done between William Hill and Playtech.
Ladbrokes, however, pushed forward with its own project, which has come up short against rivals and diverted much-needed capital from the advertising budget.
Mr Ames is the last of the old guard who served under Chris Bell, the former chief executive. Last year, he earned in the region of £380,000. But his removal is really designed to appease shareholders who have started to lose their patience with Ladbrokes’ online strategy.
Some insiders suggest Mr Ames’ departure is simply designed to offer up a scapegoat to protect Mr Glynn.
Meanwhile, Nick Rust, who was hired by Mr Glynn, will take over online operations, as well as retail and trading.
No comments:
Post a Comment