Bookmaker Ladbrokes names digital boss Mullen as new CEO
By Neil Maidment
LONDON (Reuters) - British bookmaker Ladbrokes promoted the head of its digital business Jim Mullen to the chief executive's job on Friday, reflecting the need to compete harder in the growing online market.
The firm, Britain's second-biggest bookmaker, has struggled to keep pace with market leader William Hill and take advantage of an increasingly popular online betting sector, with investment in marketing and products lagging others.
Like its traditional rivals, the group's 2,700-strong retail division also faces regulatory pressures that have hurt profits.
"The board has set me some very clear tasks for growing the business," Mullen, who plans to unveil his strategy at Ladbrokes' half-year results on Aug. 11, told Reuters.
"I already have an informed view in my mind of what needs to be done, there is not going to be a long pick-up period."
Shares in the company, down 16 percent on a year ago, slipped 0.3 percent to 110.9 pence at 0845 GMT.
Mullen will take over on April 1 from Richard Glynn, who Ladbrokes said in December would be replaced after five years in charge. He will be paid a salary of 500,000 pounds.
"We think the market will be disappointed that an outside candidate was not appointed. For us it signals more of the same ...when Ladbrokes is in urgent need of radical action," Cenkos analyst Simon French said.
Mullen, who ran William Hill's online unit before joining Ladbrokes in Nov. 2013, has overhauled its digital arm, delivering new products and systems to strengthen its position, with analysts noting some signs of improvement.
However, many still say a greater spend on digital marketing is required to grab market share, with analysts surprised to see Ladbrokes decision last month to maintain its dividend in 2015, rather than cut it to help fund investment.
Mullen said the dividend decision still stood, but that investors should rest assured it would spend when it needed to.
"Be absolutely under no doubt we have the firepower to do so. We will spend and we will look to get value for that spend if opportunities arise in marketing terms," he said.
(Editing by James Davey and Keith Weir)
