Ladbrokes share price falls as profit slides
Ladbrokes Plc (LON:LAD) today announced results for the three months ended March 31, revealing that “customer friendly results and externally imposed headwinds”, namely new the UK point of consumption tax, had hurt the company’s earnings. Ladbrokes’ new chief executive vowed to complete his review of the business ahead of schedule and to address the issues at hand in June.
Ladbrokes’ shares had lost 2.54 percent to 103.40p by 13:29 BST today. The company’s stock has shed more than six percent in the year-to-date and is down more than 20 percent on an annual basis.
The online gaming and betting operator reported that its first quarter net revenue had gained 3.3 percent from the previous year, with growth both in UK retail sales and digital sales. Pre-tax earnings, however, had slumped 22 percent annually and nearly halved quarter-on-quarter to £14.3 million, weighed on by adverse football results, and a weaker Cheltenham Festival, among other factors.
“These results demonstrate the challenges we continue to face. We need to change the way we run the business, build scale, primarily in Digital and respond faster to the customer and changes in the market place,” Ladbrokes chief executive Jim Mullen commented.
“I will complete my review of the wider business quickly and I will present some of the principal changes that I intend to make, in June, earlier than planned. Shareholders should expect me to focus on how we will build an effective competitive position, develop scale and resilience over the medium-term.”
As of 14:50 BST, Wednesday, 22 April, Ladbrokes PLC share price is 103.45p.