LAD.L Share News (LAD)

LAD.L Information

There is currently no data for LAD

Ladbrokes leaps on back of thoroughbred first-half results

Thu, 04th Aug 2016 08:15

(ShareCast News) - Bookmaker Ladbrokes first-half profits beat management and City forecasts by a length as favourable results from the sporting gods put an extra sheen on the progress being made after last year's strategic rejig.Having got of to a strong start in the first quarter, growth accelerated in the second such that revenue for the six months to 30 June was up 13% to £661.8m, led by 40% growth from digital and UK retail rising 6.4%. Most analysts had been expecting nearer £40m.With digital operating losses of £9.6m due to the significant step-up in marketing during the period, retail growth drove a 34% increase in group operating profits to £52.3m at the underlying level, which excludes exceptional costs mainly related to the merger with Coral, which last month received conditional regulatory clearance.Underlying profit before tax rose 61% to £39.8m, with earnings per share up 42% to 3.4p and the dividend was held at 1.0p per share.Chief executive Jim Mullen, who took the reins in April last year, said the strong numbers "show customers are responding positively to the new strategy at a time when the sporting gods have generally been on our side".Acknowledging that such a run of results in bookies' favour would see customer staking suffer, he noted that punters had continued to chase a turnaround win, with over the counter (OTC) staking up 1.3% on a like for like basis, led by a 15% increase in football for full Premier League season, with an OTC win margin of 17.5%. Sportsbook staking online was up over 30% as active accounts swelled more than 38%."However, 130 years of experience in sports betting has shown us that we will endure a run of customer friendly results and margins will normalise. Despite this assumption on results and our intention to continue investing in marketing, we have slightly increased our full year expectations."The second half appeared to have started well with group net revenue ahead by 14% in the five weeks to 2 August.For the full year, the analyst consensus forecast was for operating profits of roughly £96m, which is likely to be lifted nearer £100m after Mullen's "slight" guidance upgrade, which analysts at Shore Capital said would equate to PBT of £72m and EPS of 6p.They added: "The significant momentum at both Ladbrokes and Coral leaves the two groups well positioned to deliver c£500m of combined EBITDA by 2018, which we estimate could be worth over 15p of earnings"Broker Peel Hunt said the results demonstrate Mullens' strategic plan is paying off: "We believe this is important because the merger of two thriving businesses makes for a much more attractive investment case, in our view, than the proposition that Coral is taking over a struggling competitor. The ambitions of Ladbrokes' strategy were fourfold: to grow the recreational customer base in the UK; to cross-sell online in the shops; to increase the footfall in retail and to grow market share in Australia."

More News

31 Oct 2016 09:39

BROKER RATINGS SUMMARY: HSBC Raises IAG To Hold From Reduce

26 Oct 2016 15:57

Ladbrokes-Coral merger wins final CMA approval with 322 shop disposals

(ShareCast News) - Ladbrokes and Coral will be able to complete their merger "in the very near future" after the competition regulator gave its final approval on Wednesday. After the Competition & Markets Authority gave its green light, the FTSE 250 bookmaker said it had approved the disposal of

21 Oct 2016 14:38

Daisy pulls sterling junk bond as investors get tough

By Robert Smith LONDON, Oct 21 (IFR) - Daisy called off an attempt to issue a sterling high-yield deal on Friday, in the latest sign of waning UK investor appetite for riskier debt in challenging sectors. The UK company threw in the towel on the debut bond after four days of marketing

18 Oct 2016 17:12

UPDATE 4-William Hill, Amaya drop short-lived gambling merger talks

* Talks abandoned less than two weeks after announcement * Sector consolidating as more gamblers go online * European rivals have already joined forces * Amaya FY revenue forecast below market expectations * Amaya shares drop 8.3 percent (Adds share move, Amaya spokesman

18 Oct 2016 13:24

RPT-UPDATE 3-William Hill, Amaya drop short-lived gambling merger talks

(Repeats for wider distribution, no changes to text) * Talks abandoned less than two weeks after announcement * Sector is consolidating as more gamblers go online * European rivals have already joined forces * Amaya FY revenue forecast below market expectations * Ama

18 Oct 2016 08:28

Ladbrokes revenue grows for fourth successive quarter

(ShareCast News) - FTSE 250 betting and gambling company Ladbrokes reported growth for a fourth successive quarter for revenue as it remains confident of delivering full year results in line with expectations. In a trading update for the third quarter ended 30 September, net revenue increased 12.1%,

18 Oct 2016 06:56

Tuesday newspaper round-up: Bonds, Shell, bookmaker levy, farm boost

(ShareCast News) - Investors dumped UK government bonds yesterday in one of the heaviest sell-offs since the Brexit vote as international demand for sterling assets declined rapidly. Overseas investors are becoming increasingly worried that inflation and a move by the Conservative government towards

17 Oct 2016 07:13

Ladbrokes and Coral announce planned sale of 359 shops

(ShareCast News) - Bookmaker Ladbrokes announced on Monday that subsidiaries of both itself and merger partner Gala Coral Group have agreed to sell a total of 359 licensed betting offices to Done Brothers Cash Betting - trading as Betfred - and StanJames Abingdon - trading as Stan James. The FTSE 25

17 Oct 2016 06:58

Monday newspaper round-up: New Brexit plans, dividends, supermarkets

(ShareCast News) - Britain would continue to pay billions of pounds into the EU budget after Brexit to maintain cherished single-market access for the City of London and other sectors under plans being discussed by Theresa May's cabinet. The prime minister's demand that Britain controls its borders

17 Oct 2016 06:20

Ladbrokes, Gala Coral to sell 359 shops ahead of merger

LONDON, Oct 17 (Reuters) - British Ladbrokes and Gala Coral said they agreed to sell 359 shops for 55.5 million pounds ($69 million) to rivals, in a deal which will reduce their footprint and pave the way for competition authorities to allow their merger to proceed. The pair were told in Ju

10 Oct 2016 07:49

BUZZ-William Hill: best day in 3 months after confirming merger talks

** William Hill rises 5.4 pct, its best day since mid-July, after confirming merger talks with Canada's Amaya ** Co says deal would create a global leader in sports betting, poker and casino ** Top riser on Stoxx 600 and most traded by average volumes - 1.5x 30-day average in the firs

7 Oct 2016 07:39

BUZZ-UK gambling companies lower after media reports of TV ad ban

** Shares in British gambling companies fall after The Times newspaper reports that the companies are due to be banned from advertising on television during the day ** William Hill down 2.9 pct, Labrokes down 2.5 pct vs. Britain's midcap index which is up 0.2 pct ** Cenkos analyst Sim

20 Sep 2016 06:57

Tuesday newspaper round-up: May in New York, Ladbrokes, building blocked

(ShareCast News) - Theresa May will canvass leading Wall Street banks over how Britain should structure its departure from the EU to reassure them that Brexit will not damage their UK business. Mrs May will meet "mostly" chief executives from the finance sector along with figures from the technology

31 Aug 2016 07:51

Gala Coral revenue up but losses widen

(ShareCast News) - Ladbrokes said on Wednesday that revenue at Gala Coral, with which it has agreed to merge, rose in the third quarter, but the bookmaker's loss widened due to exceptional costs. In the 12 weeks ended 2 July, net revenue at Gala Coral was up 10% from 2015 to £264m, while earnings be

26 Aug 2016 08:46

Ladbrokes given a boost by Berenberg upgrade

(ShareCast News) - Berenberg has raised its rating on Ladbrokes to 'buy' from 'hold' and lifted its target price to 185p from 130p, saying the company is its second favourite stock in gaming after Playtech. The broker said since it initiated on Ladbrokes a number of positives have materialised with

Latest Share Chat

LAD.L Share News (LAD)

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Ladbrokes leaps on back of thoroughbred first-half results

Login to your account

Quickpicks are a member only feature

Login to your account