Colin Phillips
At the Start
From the Guardian site:
Ladbrokes has warned of a fall in first-half profits after customers proved luckier than Britain's second largest bookmaker since the start of the year and the benefits of an upgrade to its digital business were delayed.
Ladbrokes said its net revenue was down by about £11m so far this year, with wet weather favouring the favourites in horse racing and the big teams performing well in the Premier League and FA Cup. The gloomy outlook statement accompanied annual results that showed operating profit down by nearly a third.
Ladbrokes is also struggling to catch up with competitors in online gambling. Last year it signed an agreement with Playtech, the Israeli company that had transformed rival William Hill's digital service.
However, the partnership has proved more disruptive to Ladbrokes' business than expected and the predicted gains have not yet materialised.
Group operating profit fell 32.9% to £138.3m for the year to 31 December but pre-tax profit, including exceptional costs of £51.6m, mainly for switching to Playtech systems, fell by two thirds to £67.6m. The annual dividend will be unchanged at 8.9p a share.
Richard Glynn, Ladbrokes' chief executive, said: "While our financial results for 2013 were disappointing, we made real operational progress which has continued into this year. We remain confident about the direction of the business and the momentum we are creating."
Glynn is under pressure after his plan to revamp Ladbrokes faltered last year, resulting in a string of profit warnings before the latest downbeat forecast. The company is in a race to get its online business up to scratch so that customers can bet easily on mobile phones and tablets before the bonanza of the football World Cup, which kicks off in July.
Ladbrokes said it expected to close between 40 and 50 shops this year because of rising operating costs and higher rents as the economy recovers.
The betting industry also faces political pressure over its reliance on fixed-odds gambling machines. Britain's biggest bookies have launched a code of conduct including letting customers set a maximum loss before betting on what has been called the "crack cocaine" of gambling.
Ladbrokes shares have lost about 38% of their value since the Playtech deal was announced last March even as the wider stock market has boomed. The shares were down 1.8% to 148.4p in early trading.
Ladbrokes has warned of a fall in first-half profits after customers proved luckier than Britain's second largest bookmaker since the start of the year and the benefits of an upgrade to its digital business were delayed.
Ladbrokes said its net revenue was down by about £11m so far this year, with wet weather favouring the favourites in horse racing and the big teams performing well in the Premier League and FA Cup. The gloomy outlook statement accompanied annual results that showed operating profit down by nearly a third.
Ladbrokes is also struggling to catch up with competitors in online gambling. Last year it signed an agreement with Playtech, the Israeli company that had transformed rival William Hill's digital service.
However, the partnership has proved more disruptive to Ladbrokes' business than expected and the predicted gains have not yet materialised.
Group operating profit fell 32.9% to £138.3m for the year to 31 December but pre-tax profit, including exceptional costs of £51.6m, mainly for switching to Playtech systems, fell by two thirds to £67.6m. The annual dividend will be unchanged at 8.9p a share.
Richard Glynn, Ladbrokes' chief executive, said: "While our financial results for 2013 were disappointing, we made real operational progress which has continued into this year. We remain confident about the direction of the business and the momentum we are creating."
Glynn is under pressure after his plan to revamp Ladbrokes faltered last year, resulting in a string of profit warnings before the latest downbeat forecast. The company is in a race to get its online business up to scratch so that customers can bet easily on mobile phones and tablets before the bonanza of the football World Cup, which kicks off in July.
Ladbrokes said it expected to close between 40 and 50 shops this year because of rising operating costs and higher rents as the economy recovers.
The betting industry also faces political pressure over its reliance on fixed-odds gambling machines. Britain's biggest bookies have launched a code of conduct including letting customers set a maximum loss before betting on what has been called the "crack cocaine" of gambling.
Ladbrokes shares have lost about 38% of their value since the Playtech deal was announced last March even as the wider stock market has boomed. The shares were down 1.8% to 148.4p in early trading.
