Shares in Ladbrokes were up on the FTSE 250 in morning trading after the bookmaker reported a rise in net revenue and operating profit in the three months ended 31 March.

Net revenue increased 2.3 in the period while operating profit rose 1.9 per cent. Net revenue at the group's British Retail OTC division was up 3.2 per cent and the group's British Retail machines have seen gross wins rise 14.9 per cent.

During the period Ladbrokes reduced its net debt from £492 million to £443.3 million.

Richard Glynn, Chief Executive of Ladbrokes, said, "We expect the economic climate in the UK to remain challenging in 2011 with consumer confidence and disposable incomes continuing to suffer. Notwithstanding this, at this early stage in the year, the business is performing in line with the Board's expectations. The rollout of our new Global Draw machines has been very smooth and we expect this to conclude ahead of schedule.

"The Group's strong balance sheet, strengthened management and clear strategy position us well to address the challenges of 2011. Our drive to make Ladbrokes favourite again has good momentum with continuing operational improvements, capital investment underway and encouraging trends exhibited in areas such as Bet In Play and mobile."

By 08:40 shares in Ladbrokes were up 4.74 per cent on the FTSE 250 to 141.30 pence per share.