British bookmaker Ladbrokes promoted the head of its digital business Jim Mullen to the chief executive's job today, reflecting the need to compete harder in the growing online market.
The firm has struggled to keep pace with Paddy Power and 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 in August, said.
Mullen will take over on April 1 from Richard Glynn, who Ladbrokes said in December would be replaced after five years incharge. He will be paid a salary of £500,000.
Mullen, who ran William Hill's online unit before joining Ladbrokes in November 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.
