Ladbrokes warn of profits slump
Ladbrokes have announced that they will miss their forecast on revenues, again heaping more misery on investors after a year to forget for the UKs second largest bookmaker.
Already finding it very difficult to compete with their main rival and number one UK bookmaker William Hill, Ladbrokes believe their profits for the year will be in the region of ten to fourteen million pound, a significant drop from earlier estimates for the year of £27.5 million.
“Our digital earnings have been disappointing reflecting a lack of competitiveness in sportsbook, lower margins than planned and a greater disruptive impact than expected from the transition necessary to grow digital for the long term,” Chief Executive Richard Glynn said in a statement.
Group operating profit fell almost 20% to £85.7 million in the first six months of the year ending in June.
The company which has formed a partnership with online software developer Playtech hope that the next year will see improved revenues as the partnership takes effect. A previous venture with William Hill and Playtech saw huge profits for both companies.
