Ladbrokes forecasts 57 percent drop in EBIT earnings in 15Q3

Wednesday 21st of October 2015

Ladbrokes Plc has issued its 15Q3 interim management statement forecasting a 57 percent drop in EBIT earnings to £14.3 million ($22.1 million).

Ladbrokes stated that its earnings performance had been impacted by higher taxation and increased marketing spend targeting UK football and recreational players.

The operators UK retail division has recorded a 1 percent downturn in net revenues. Ladbrokes noted that despite seeing strong start to the 2015/16 football season, the division had been impacted by weak horse racing results in September which weakened net revenue margins.

However, Ladbrokes saw its digital division return to profits, with net revenues up 5.7 percent. The division sports betting product saw wagering up 34 percent, supported by a 5.6 percent increase in active players.

Ladbrokes further detailed improved results for its online gaming products which recorded net revenue gains of 11.5 percent.

Updating the market on its planned £2.3 billion merger with Gala Coral, Ladbrokes was positive of gaining regulatory approval by the Competition and Markets Authority to complete the deal.

“These numbers reflect the first 68 days of activity since we announced our organic plan to aggressively invest and grow our recreational and multi-channel customer base particularly across UK Retail, Ladbrokes.com and Ladbrokes Australia,” said Jim Mullen, Ladbrokes chief executive, on the company’s 15Q3 performance.

Read more: http://www.sbcnews.co.uk/featurednews/2015/10/22/tax-headwinds-increased...