After what is considered in the online gaming world as a long stint as the Chief Executive Officer of an organization, Ladbrokes’ Chris Bell has announced that he will leave the company.
In a statement from Ladbrokes PLC on Tuesday, Bell announced his resignation from the lead position at the European gaming organization, although no reason was given for the departure. To streamline the changeover and minimize any problems, the company and Bell worked out a deal to delay his departure until mid-2010. Although there was no reason for the change given, both parties seemed to be amicable about the situation.
“Ladbrokes is a great company”, Bell said during the announcement. “I have been privileged to be its Chief Executive Officer for nine years and I am proud of all that we have achieved in that time. I look forward to doing all I can to support the company during this period of transition.”
Peter Erskine, the Chairman of the Board of Ladbrokes, stated during the announcement, “It has been agreed between the Board and Chris that this is an appropriate time to seek new leadership for the business. The Board is currently engaged in the search for a new Chief Executive Officer to fully capitalize on Ladbrokes’ brand strength and position the company for a new era of profitable growth. Chris Bell has made an invaluable contribution to the growth and development of Ladbrokes during his 20 years with the company and the nine years he served as Chief Executive Officer.”
Bell had a successful career working with Allied Domecq PLC, a liquor business, before joining Ladbrokes in 1991. While working with the gaming company, he became Vice Chairman of the Association of British Bookmakers, the Chairman of the Bookmakers Committee, and a board member of the Horserace Betting Levy Board. He took over as Chief Executive Officer at Ladbrokes after the company sold its interests in the Hilton International hotel division.
Ladbrokes is recognized as the largest betting outlet in England and also operates the largest retail bookmaking business in Europe. The organization came into existence in 1886 and, after the legalization of betting shops in England in 1961, Ladbrokes PLC was the first to offer outlets to place a bet. From that small start, a 2,200-outlet empire was built, with betting shops located not only in England, but also in Ireland, Italy, and Belgium. Ladbrokes has also created one of the few “one stop” online gaming sites and offers its customers a complete package of sports betting, poker, casino, bingo, and backgammon action.
In 2008, Ladbrokes took in £16 billion in bets from 740 million wagers, enabling the company to post revenues of £1.1 billion. The economic downturn of late 2008, however, spread into its action in the 2009 calendar year. The first half 2009 report (second half figures are not yet available) showed that Ladbrokes was down 6.6% in net revenues to £504.4 million (compared to the £539.8 million of 2008) and also showed a 25.6% decline in operating profit, down to £98.6 million versus the £132.6 million from the year before.
Over the past year the Ladbrokes’ stock, traded on the London Stock Exchange under the symbol “LAD,” has traded as high as 250.75 pence and as low as 116.40. As of the close of business on Thursday, the stock had ticked back from its Wednesday high of 149.70 pence to 148.50.
