UK bookmaker Ladbrokes saw its Q3 profit plunge despite increased wagering activity and a strong performance by its Australian operation.

According to an interim statement issued on Thursday, Ladbrokes group earnings fell 56.7% to £14.3m in the three months ending Sept. 30. Overall revenue dipped 0.7%, although Q3 2014 benefited from the second half of the FIFA World Cup, without which the company claims revenue would have risen 2%.

The company credited the earnings decline to the impact of new taxes, poor sports betting margins and increased marketing expenditure. Marketing costs rose to over 30% of revenue during the quarter, but the company says the promotional push is paying off via serious gains in active customers and betting turnover.

Ladbrokes’ digital operations (Ladbrokes.com and the online betting exchanges) reported revenue up 5.7%. Online sportsbook stakes rose more than one-third but poor margins resulted in a 0.5% drop in online sports revenue. In contrast, online gaming revenue was up 11.5%, the fourth consecutive quarter of online gaming growth, thanks to a 29.4% rise in active gaming customers.