Ladbrokes' results went some way to calming the furore over the company's delayed and over-budget update of its digital offering. Unfortunately, the contrast with bitter rival William Hill's booming online operation could not be greater and the bungle has already cost digital chief Richard Ames his job. But, at least the bookmaker's traditional bricks and mortar retail business is gaining momentum, driven by a 20 per cent rise in revenues generated by gaming machines.
Net revenue in the UK retail business grew by nearly 10 per cent, including a resilient 2.4 per cent uplift on the over-the-counter side, with amounts staked up by just under 1 per cent. Gaming machine revenue gains, plus more efficient shops, meant divisional operating profits were ahead by 21 per cent to £91m, on net revenues of £370m.
The digital division, by contrast, felt the impact of costly delays and operating profits halved to £15m as costs rocketed. However, in spite of the delays, the marketing strategy unveiled earlier this year seems to be working - active digital users are up by a fifth and mobile betting numbers have doubled from a low base.
Broker Peel Hunt forecasts full-year pre-tax profits of £184m and EPS of 17.7p (£157m and 14.9p for 2011).
LADBROKES (LAD) | ||||
|---|---|---|---|---|
| ORD PRICE: | 158p | MARKET VALUE: | £1.43bn | |
| TOUCH: | 157-158p | 12-MONTH HIGH: | 183p | LOW: 113p |
| DIVIDEND YIELD: | 5.2% | PE RATIO: | 8 | |
| NET ASSET VALUE: | 42p* | NET DEBT: | 104% | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 483 | 72 | 6.7 | 3.90 |
| 2012 | 551 | 107 | 12.5 | 4.30 |
| % change | +14 | +49 | +87 | +10 |
Ex-div:12 Sep Payment:25 Oct *Includes intangible assets of £646m, or 71p a share | ||||
