A couple of weeks ago David Butler wrote a piece on Paddy Power and its continued success as a listed company. The question was posed as to whether punters would be better off betting on Paddy rather than against him?
Sadly, for Ladbrokes the same cannot be said. It was widely reported recently that the Irish arm of the British owned bookmaker chain had entered a period of examinership (reported here, here and here).
A number of reasoned as cited for the decline in the chain’s revenue in the Irish market, one of which is sky-high rents, based on prices from the boom years. It’s interesting to note however at the end of a piece in the Irish Examiner which says:
“At the time, the company’s management noted that while the Irish economy continues to improve, “we have
seen a decline in profitability reflecting continuing highly competitive conditions in the Republic of Ireland””.
Following the recession of 2008-2009, unemployment in Ireland rose rapidly. In recent years the rate has begun to fall again, and will probably dip below 9% this year. I wonder does an improving economy spell bad news for bookmaker chains in the short term; there are less people with downtime that can be used to go to the bookies?