Ladbrokes Shares Fall After Online Profits Warning

Ladbrokes shares fall after online revenues cautioning


26 September 2013


The betting company Ladbrokes has warned that earnings will fall brief of expectations due to the fact that of a disappointing efficiency in its online business.


Profits for its online arm will remain in the series of ₤ 10-14m this year, far except the ₤ 27.5 m which had been anticipated, the business said in a statement.


Shares fell 10% on the news in early trading in London.


Ladbrokes has currently provided one profits cautioning this year.


President Richard Glynn said that conditions had been "tough"


Last month the business reported a steep decline in revenues, as a downturn in gaming machine incomes dented its figures.


Pre-tax earnings for the very first 6 months of 2013 were down 49% from the very same duration last year, being up to ₤ 55.1 m,


In the current trading upgrade, which was advanced from next month, Mr Glynn said: "Our digital incomes have actually been frustrating showing a lack of competitiveness in sportsbook, lower margins than prepared, and a higher disruptive effect than anticipated from the shift needed to grow digital for the long term".


Ladbrokes is Britain's 2nd largest bookmaker and has more than 2,500 High Street stores. It has just recently announced a partnership with online gaming software provider Playtech, in a bid to increase its digital existence.


Elsewhere the business reported that trading in betting stores had actually enhanced, with football bets and over-the-counter stakes choosing up.


Richard Hunter head of equities at Hargreaves Lansdown stockbrokers stated that while the share rate drop was "extreme", the company's share price hasn't carried out well just recently. It has increased by just 1% over the past year, while rival bookie William Hill has seen its shares rise by 36% in the same duration.