Ladbrokes warns slower trading will hit profits

[Iron]

http://www.bbc.co.uk/news/business-22149852

[jimrobo]

just saw this on bloomberg. Issued a profit warning this am.

cheltenham lost them 6m in revenue. 9m when you add costs and taxation.

[Euler]

Full statement: -

http://www.investegate.co.uk/ladbrokes- ... lc%20Alert

I think quite a few business have suffered thanks to the weather though.

http://www.bbc.co.uk/news/business-22121894

[Euler]

While economic environment continues to be challenging for OTC, the quarter has also been impacted significantly by weather affected lost racing (62 cancellations versus 36 in 2012) and by poor results at Cheltenham, which combined, amount to circa £5 million of lost gross win. OTC gross win was down 2.6%.

We have continued to benefit over the period from favourable sporting results, particularly in football, as well as ongoing improvements to trading. A higher gross win margin overall, 18.9% for the period (Q1 2012: 17.2%), has contributed in the quarter to a lower level of recycling and therefore amounts staked, down 11.2%, with footfall flat but slippage and stake per slip down.

The Grand National in Q2 generated circa £11 million gross win (£15 million for the group), which was up by circa £4 million.

[Euler]

Looking at the Grand National results and assuming an unrealistic 20% over round they took around £75m in bets, about ten times Betfair.

[pdupre1961]

Looking at the Grand National results and assuming an unrealistic 20% over round they took around £75m in bets, about ten times Betfair.

According to their accounts (Ladbrokes and Betfair), Ladbrokes are about 8 times the size of Betfair. This must be good for BetDAQ...

[jimrobo]

the strange thing is on bloomberg all they did was have a go at ladbrokes and go on about their playtech deal saying their push to digital hasn't been very strong. Not once did they acknowledge the fact they have just bought the 2nd biggest exchange, or even suggest that it may be a sector wide problem rather than a specific ladbrokes problem (given they have been the first to come out with first quarter earnings!).

[steven1976]

Im surprised that weather has been used as a reason for the decline as I thought I read much more cancelled days last year when there was more snow. Im sure im wrong but it just felt like more cancelled days last year to me.

[jimrobo]

this was only a first quarter earnings statement for ladbrokes this am so it just covered jan-march

[Iron]

Mobile horse racing betting fuels William Hill -

http://www.telegraph.co.uk/finance/news ... -Hill.html

[andyfuller]

Ladbrokes profits halve despite 'good' World Cup

http://www.bbc.co.uk/news/business-28751758

[andyfuller]

Hedge funds bet big on Ladbrokes

http://www.telegraph.co.uk/finance/mark ... rokes.html