26th Sep 2013 07:32
LONDON (Alliance News) - Ladbrokes PLC Thursday warned that its trading margins are still lower-than-expected across the business due to poor betting results, and results from its digital operations will be below current market expectations as it struggles to push through improvements.
The betting company had reported worse-than-expected first-half results in August which it blamed on lower gaming machine revenue and fewer people going into its betting shops, meaning less money was being bet.
In a trading statement, the company said numbers going into its shops had recovered and the amounts being staked had improved significantly, while the machines performance has stabilized.
However, its said it has yet to see any noticeable improvement in the digital business it is trying to integrate and operating profit at the division will be between GBP10 million and GBP14 million in the full year, below current market expectations.
Margins across the business, meanwhile, are under pressure because results have gone against it and it's having to pay out more on more of the stakes being placed.
"While we are disappointed that the Digital results are still not where we anticipated they would be, the Board believes that the strategy is the right one and that the actions taken to date, along with those planned for the coming months, will drive the long term success of the business. We remain fully confident in this management team to deliver them," Chairman Peter Erskine said in a statement.
"We remain confident that the strong foundations we are putting in place will drive performance during 2014 and beyond," the company said.
Ladbrokes shares were down 8% at 173.1 pence early Thursday.
By Steve McGrath; [email protected]; @SteveMcGrath1
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