GAMBLING GROUP&#039;S PROFITS FALL
04th August, 2011 at 03:59:34
Ladbrokes releases a weak half yearly set of results
The major online and land gambling group Ladbrokes
has released a weak set of half-yearly results, reporting a 33% decline in first half pretax profit, and commenting that it remains cautious on the outlook for the struggling British economy.
Pretax profit fell to £ 76.6 million from £ 114.7 million the year before, reflecting a one-off interest rebate which boosted the previous year's figure.
Market expectations for underlying pretax profit had ranged between £ 77 million and £ 84 million, with the average being £ 79.8 million according to a Reuter's poll of six analysts.
Ladbrokes management said the group was on track to meet expectations for the full year.
"Whilst remaining mindful of tough economic conditions and continuing uncertainty affecting consumer disposable incomes [in the UK], we remain in line with board expectations for the full year," the company said in a statement.
The average forecast for full-year pretax profit stands at £159 million.
Net poker revenue took a particular hammering, the numbers reveal, falling 30.8% in the first half of 2011 to £ 7.4 million from £ 10.7 million in the first half of 2010. The number of active players in the first half fell by 21.3% while customer yields were down 11.3 percent.
The company's online casino and bingo operations delivered overall net revenues marginally ahead in the half (6.6% excluding effect of the World Cup) with growth in internet casino and bingo offset by further declines in poker.
Ladbrokes has been active in the M&A sector this year, holding talks with 888.com and Playtech and currently reportedly exploring possibilities with Sportingbet
.com (see previous reports).
Related News Tags: Playtech, Sportingbet, Ladbrokes