23rd Oct 2014 06:45
LONDON (Alliance News) - Ladbrokes PLC on Thursday said it is on track to meet full-year expectations and reaffirmed its dividend plans after posted a jump in operating profit and a rise in revenue in the third quarter.
The FTSE 250 bookmaker said group operating profit in the third quarter to September 30 was GBP33 million, nearly double the GBP17 million posted a year earlier. That came on the back of a 13% rise in net revenue in the period, it said.
On the back of the performance, the group re-confirmed its plan to pay a full year dividend of no less than 8.9 pence per share, which was the previous year's payout.
Digital revenue for the group in the period was up 46%, given a big boost by its Australian operation where revenue rose nearly three-fold. Sportsbook net revenue in its digital arm was up 58%, while its Gaming division also returned to growth, up 1.4%.
UK retail net revenue was up 6%, backed by better football results for the company and improved over-the-counter margins of 17%, against 14.9% for last year.
OTC net revenue was up 6.3% in the quarter, driven by a good start to the new football season, though overall staking in the quarter fell 7.9% due to a continuation of the horseracing trends seen in the second quarter. Overall OTC staking in the year to date is up 0.5%, Ladbrokes said.
It posted a strong rise in revenue from its European retail business, with Belgian revenue rising 21% and Spain retail increasing 83%.
"Ladbrokes is on track. The major operational improvements completed in H1 are now delivering growth. Our performance in the World Cup and throughout Q3 demonstrate that we are competing successfully and winning customers," said Richard Glynn, Chief Executive of Ladbrokes.
Glynn added the fourth quarter has started in line with its expectations and said the group is on track to deliver full-year results in line with forecasts.
By Sam Unsted; [email protected]; @SamUAtAlliance
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