Ladbrokes Profit Up 1.9% In Q1 2011 As 888 Talks FounderApril 15, 2011 8:47 am
Ladbrokes has just released their financial figures for the first 3 months of 2011 showing a 2.3% rise in revenue and a 1.9% rise in operating profit, excluding High Rollers.
As well as being the biggest retail bookmaker in the world with around 2,400 betting shops, the UK based gambling company also operates several online gambling websites.
During Q1 Ladbrokes saw its online gaming revenue increase by 1.2% boosted by its casino business up by 23.9% and bingo up 18.8%. These verticals helped offset the disappointing revenue results from its sportsbook which was down by 5.3%, mostly as a result of a poor Cheltenham festival. Poker revenue was also down by a whopping 32.8%.
Commenting on the Q1 financial results, CEO Richard Glynn said: “We expect the economic climate in the UK to remain challenging in 2011 with consumer confidence and disposable incomes continuing to suffer. Notwithstanding this, at this early stage in the year, the business is performing in line with the Board’s expectations”
While making its announcements, Ladbrokes also broke the news that the ongoing merger talks with 888 had foundered with the two companies unable to agree a price.
However, the market reacted well to the news and in early trading Ladbrokes shares had risen 3.85% to 140.1p, assisted by a positive share recommendation by Deutsche Bank analysts, who stated:
“Ladbrokes has an improving balance sheet, a revitalized senior management team and in our view there is growing evidence that recent operational investments are gaining traction. With further operational improvements likely to occur over the coming quarters, we think Ladbrokes valuation offers upside.”
In a day of announcements for Ladbrokes, the companys also mentioned the news that its new Chief Financial Officers was to be Ian Bull, previously from the brewer ‘Greene King.’