Ladbrokes says it’s on track

Britain’s second biggest bookmaker Ladbrokes said it is on track to meet full year expectations after operating profits rose 8.5 per cent in the third quarter, after stripping out the impact of last year’s soccer World Cup.
By The Newsroom
Published 13th Oct 2011, 10:00 BST

The company, which on Monday pulled out of talks to buy online rival Sportingbet, made an operating profit of £49.7m in the quarter to end-September.

Ladbrokes, which has nearly 2,100 betting shops in the UK, said net revenue was up 2.5 per cent in the period, including a two per cent rise in UK retail revenue.

Hide Ad
Hide Ad

The performance was boosted by strong growth in gross win from gambling machines. Weekly gross wins (total bets minus payouts) from each gambling machine in its shops rose by 19.8 per cent to £866.

“The economic climate in the UK remains challenging and whilst we expect this to continue we are confident in our strategy and remain in line with the board’s expectations for 2011,” said chief executive Richard Glynn.

Market expectations for Ladbrokes’ full year EBIT (earnings before interest and tax) range between £174m and £198m, with the average at £187m.

Ladbrokes had been in takeover talks with Sportingbet since June, but the deal collapsed amid concerns over Sportingbet’s business in Turkey where online gambling is illegal.

The breakdown of discussions with Sportingbet followed Ladbrokes abandoning plans to buy 888 earlier in the year following months of protracted talks.

Related topics:BritainTurkey