Sponsored by
Ladbrokes betting on solid results after favourites win
Ladbrokes yesterday said trading remained in line with market expectations, in spite of a recent run of poor football and horse racing results for the bookmaker.
Group profit in the four months to October 31 rose 10 per cent as gambling machine revenue increased 14 per cent. The average weekly profit for a machine was 677.
Total gross win – the amount of income after payouts to punters is subtracted – rose 5 per cent at its retail operations in Britain.
Chief executive Chris Bell said: "Although a run of poor football and horse race results at the end of the period has affected performance, the group remains within the market expectation range for 2008."
Rival bookie Paddy Power also stuck by earnings forecasts yesterday, although it repeated a previous warning that the economic conditions were having an effect on the group.
It said in August that it expects figures for 2008 to exceed last year's level, but not by the amount hoped for earlier in the year.
Ladbrokes recently announced half-year profits of 98.3m for its retail arm, down 2.6 per cent on a year earlier after unfavourable results at Royal Ascot and Euro 2008 hit margins in June.
Group profits were down to 126.7m from 154.4m as the surplus generated by 'high-roller' customers reduced by 20m to 40m.
Ladbrokes has 2,600 betting shops in Britain, Ireland and continental Europe. It also has an e-gaming division, which achieved profits of 26.2m at the half-year.
Recent trading was hit by results at the US Breeders' Cup race meeting, when Frankie Dettori's mount Raven's Pass was among five European winners.
The Uefa Cup also went against Ladbrokes on October 23, when 14 out of the 16 games were won by favourites.
Numis Securities kept its 2008 profits forecast for Ladbrokes unchanged at 214.3m, but downgraded the 2009 figure by 9 per cent to 169.5m to reflect a more cautious performance in over-the-counter betting.
Analyst Richard Carter added: "Ladbrokes, like William Hill two weeks ago, has delivered a solid trading update for the four months to October 31."
Email to a friend
Print this page
Looking for...
Featured advertisers
Jobs
Search for a job
Motors
Search for a car
Property
Search for a house
Weather for Yorkshire
Thursday 24 May 2012
Today
Sunny spells
Temperature: 10 C to 25 C
Wind Speed: 12 mph
Wind direction: North east
Tomorrow
Sunny
Temperature: 9 C to 21 C
Wind Speed: 16 mph
Wind direction: East
