LADBROKES TAKES BIG HIT IN 2013 FULL YEAR RESULTS
25th February, 2014 at 08:45:31
Results "disappointing" says chief executive officer
plc chief Richard Glynn said he remains optimistic despite a plummet in 2013 group pre-tax profits of 66 percent, a 26% drop in profits from its UK retail business and a 74% drop in profit from its digital division during its 2013 fiscal year.
Key performance indicators for the year ending December 31, 2013 include:
- Group net revenue down 0.6% - Pre-tax profits fell 66% to £ 67.6 million (2012: £ 200.7 million) - Group operating profit of £ 138.3 million, down 32.9% - Underlying earnings per share down 36.4% to 11.7 p - Full year dividend maintained at 8.9p (2012: 8.9p) - Full year exceptional costs of £ 51.6 million largely driven by costs of transition to Playtech products and platforms, business restructuring and impairment of shop licences - High Rollers contributed £ 5.9 million of operating profit (2012: £ 30 million)
Richard Glynn, Chief Executive, commented:
While our financial results for 2013 were disappointing, we made real operational progress which has continued into this year. We remain confident about the direction of the business and the momentum we are creating.
As we have made clear, H1 is about delivery and H2 is about growth. Our immediate focus is on the completion of our remaining platform, product and capability upgrades, notably single wallet and CRM, which will begin to deliver tangible benefits from the World Cup onwards.
The early evidence from our changes to the desktop sportsbook and to our mobile offer are encouraging, giving us confidence that where our product upgrades and improved capabilities converge behind our brand, we have a powerful proposition. We look forward to competing even harder through the course of this year."
Ladbrokes plc has issued four profit warnings over the past twelve months saying the migration to Playtech technology had caused greater disruption than expected (see previous reports).
Related News Tags: Playtech, Ladbrokes