Ladbrokes returns to profit following Euro 2016 bonanza

England’s disappointing performance and Portugal’s surprise victory at Euro 2016 have helped Ladbrokes return to profit.

Jim Mullen, the chief executive of the high street bookmaker, said the “sporting gods have generally been on our side”, helpingthe firm to post pre-tax profits of £25.2m in the first half of 2016, compared with a loss of £51.4m in the same period last year.

Mullen said the most profitable results for the company had been England’s draws with Russia and Slovakia in Euro 2016, and Portugal’s victory over France in the final. He also revealed, however, that Ladbrokes had paid out £3m to punters who backed Leicester City to win the Premier League and endured an “absolutely shocking” run in major horse racing events such as the Grand National, Cheltenham and Royal Ascot, where a string of favourites won key races.

The company announced revenues up 13.1% year-on-year to £662m during the half-year. Mullen said two-thirds of the improvement during the period was linked to the “bookmaker-friendly results”, and that the rest was down to a strategic drive to modernise Ladbrokes’ shops and website.

Mullen was promoted to chief executive from his role as digital boss in March 2015 in an attempt to revitalise the company as it faced growing competition from online rivials such as Paddy Power Betfair.

“We are a business in transition,” he said. “We are focused on our recreational customers, where betting is a pastime. I also think that retail and digital can actually work hand-in-hand if done properly.”

Ladbrokes has agreed a £2.3bn merger with its rival Gala Coral, which will combine the UK’s second and third-largest high street bookmakers behind William Hill. The Competition and Markets Authority cleared the deal last month, but ruled the enlarged company must sell between 350 and 400 shops. Ladbrokes and Gala Coral currently run about 4,000 shops between them

Mullen said the CMA’s ruling was fair and that Ladbrokes was delighted with the interest it had already received from companies looking to buy the shops it must offload. It hopes to complete the deal in the autumn.