Ladbrokes Share Price Plummets 12 Percent: Weak Margins Cited

Written by:
Aaron Goldstein
Published on:
Jun/28/2012
Ladbrokes Share Price Plummets 12 Percent: Weak Margins Cited

Ladbrokes, one of the UK’s largest bookmakers, saw its shares fall almost 12 per cent after issuing a profit warning due to declining revenues in its online business

Camasino-051512.jpg

From Christopher Thompson of the Financial Times: 

The bookies said consensus full-year earnings before interest and tax (ebit) profits were expected to be £205m – £10m lower than analysts’ previous projections.

Weak margins in online sports betting and technological problems meant lower-than-expected online revenues, the company said.

Ladbrokes said first-half earnings from its digital business were expected to be about £15.5m, or half the amount in the first half of 2011 – only up 6 per cent on the previous year.

Analyst Nick Batram of Peel Hunt advised the Times that Ladbrokes reputation has taken a hit in recent months.

“There was always a risk that there would be some delay in the digital turnaround and poor sports results have simply given greater exposure to the issues,” he said.

The turnaround strategy outlined by Ladbrokes CEO Richard Glynn late last year has not been especially effective.

- Aaron Goldstein, Gambling911.com

 

Business/Financial News

Québec Begins to Enforce Blacklist of 2,200 Online Gambling Websites

Less than three months after buying bwin.party, GVC has signed a 10-year deal with UK operator Betfred which involves “the full migration of Betfred’s online business

PaySafe Shareholder Revolt Over Executive Pay Surfaces

Shareholders at alternative online payment provider, Paysafe Group Plc, have revolted against the company’s current executive payment structure.

PremierPerHead.com Offers Live In-Play Betting for All Major Sports Plus Tournaments

The Internet sports betting industry continues to grow at a rapid pace and one of the biggest contributors to this growth is live in-play betting across a wide spectrum of global sporting events.

Why PremierPerHead.com has the Most Comprehensive Pay Per Head Services?

The term “full service” is often exaggerated and overused these days when it comes advertising. Many companies will claim to offer everything you need, but often times they come up well short on the delivery end of their promises.

Premium Sportsbook Software Solutions for Bookmaker Agents at PremierPerHead.com

If you strive to be the best at what you do, then you need to surround yourself with the best tools available to help get the job done right. That is the main reason why Premier Per Head has grown to become the No. 1 Pay Per Head site in the Internet sports betting industry today.

Syndicate