Early Release of 1st Quarter Results

15 April 2013

Ladbrokes plc ("the company") announces its IMS for the 3 months ended 31 March 2013 ("the period").

Ladbrokes continues to progress its reinvigoration strategy. This quarter has seen further improvements in pricing trading and liability management, continued evolution of our retail offer, the delivery of a new Digital sportsbook and strong cash generation.

Ladbrokes had always planned for a reduction in group operating profit during the quarter due to known taxation and cost headwinds in UK Retail and the expected H2 weighting of growth in Digital revenues.

This reduction has however been exacerbated by softer trading than expected in Q1, particularly in the second part of the quarter, during which we saw a number of one off factors including; a significant reduction in profit from Cheltenham, lower revenues from high value gaming customers and a proportionately higher impact from horseracing cancellations.

When coupled with the revised 2013 outlook for our Digital business following our deal with Playtech we now expect group operating profit for the year to be at the bottom of the existing market range, in light of which the Q1 IMS has been released today.

·; Group net revenue (1) up 3.3%

·; Group net revenue (1)(2) down 0.9%

·; Group operating profit (3) £37.4 million, down £13.0 million, largely reflecting circa £9 million increase in like for like costs and machine taxation in UK Retail as previously flagged and circa £6 million less revenue from Cheltenham.

(1) Continuing operations, excluding High Rollers

(2) Like for like adjustment to remove impact of machine games duty, introduced from 1 Feb 2013

(3) Profit before tax, net finance expense and exceptional items. Includes amortisation of customer relationships

Richard Glynn, Chief Executive, commented:

"We continue to make progress in implementing the plans necessary to transform Ladbrokes. While we will always be subject to the vagaries of one off events and short term trading trends, we continue to deliver against our strategy and build on the improvements made in the business to date.

The trading environment and economic conditions since the start of the year have remained challenging, which when combined with a number of specific one off factors in the latter part of the period, have driven a softer first quarter than expected.

After a slow start, the performance of machines in recent weeks shows encouraging signs of responding to planned initiatives. In OTC a significant increase in lost racing and a poor Cheltenham materially impacted performance during the quarter. However we maintained a strong margin performance throughout and will continue to implement trading developments during 2013, allied to the ongoing evolution of our value offer to compete aggressively but sensibly for customers.

We have a number of initiatives in the business already underway to redress some of the areas highlighted by the first quarter's trading. With our new sportsbook fully launched, we have a strong online offer and expect it to play a big part in growing the business, following an initial period of transition. Our partnership with Playtech aims to address our underperformance in gaming and accelerate our performance in mobile. We will also take the opportunity to drive efficiencies across all parts of the business."

UK RETAIL

Machines

Machine gross win was ahead by 3.2% for the quarter, with gross win per shop per week of £3,569 up 0.3%.

Growth during the period, particularly during the first part of the quarter, was lower than expected, with the impact of tougher comparatives and a more competitive market as previously flagged.

In recent weeks we have been encouraged that like for like growth is beginning to reflect the benefits of our machine development plans. Gross win per shop in the last four weeks has been up circa 3% with total gross win up circa 8%.

Machine density per shop for the quarter was 3.90 (Q1 2012: 3.85) with an additional 137 machines added during the period. Gross win per terminal week of £916 compared to £923 in Q1 2012.

Over the Counter

While economic environment continues to be challenging for OTC, the quarter has also been impacted significantly by weather affected lost racing (62 cancellations versus 36 in 2012) and by poor results at Cheltenham, which combined, amount to circa £5 million of lost gross win. OTC gross win was down 2.6%.

We have continued to benefit over the period from favourable sporting results, particularly in football, as well as ongoing improvements to trading. A higher gross win margin overall, 18.9% for the period (Q1 2012: 17.2%), has contributed in the quarter to a lower level of recycling and therefore amounts staked, down 11.2%, with footfall flat but slippage and stake per slip down.

The Grand National in Q2 generated circa £11 million gross win (£15 million for the group), which was up by circa £4 million.

Operating costs in the period have increased in line with expectations.

During the period we opened 29 new shops and acquired 7. We expect to have added circa 100 net shops by the end of 2013.

DIGITAL

Digital net revenue for the period was down by 0.7% with sportsbook growth of 13.2% (18.1% adjusted for Cheltenham year over year) offset by an 11.4% decline in gaming largely driven by lower revenues from high value customers in casino.

Sportsbook growth has been driven by a stronger margin, particularly during the first six weeks of the period when margin was 10.8%, circa 400 basis points higher versus the same period last year. Sportsbook margin for the quarter was 9.6% (Q1 2012: 7.4%).

A decline in sportsbook amounts staked, in part expected due to the impact of reducing 'unprofitable' turnover, has been more marked during the second part of the quarter, partly explained by the migration of active customers to the new Digital sportsbook. We will inevitably see an initial period of transition as existing customers familiarise themselves with the new site and we optimise their user experience. Thereafter we expect to see stronger customer KPIs and growth in sportsbook revenue.

Throughout the year we will continue to evolve the new website, enhance our Mobile presence through a re-launch on the Mobenga platform and release a dedicated 'Vegas' gaming tab on Ladbrokes.com. We expect to begin to realise the full growth potential in our Digital business in 2014 when all of the benefits of our partnership with Playtech can be implemented and while we have focussed resources to ensure a swift implementation, the risks of disruption from transition are inevitable, as a result of which we expect to see Digital profits decline in the current year.

EUROPEAN RETAIL

Net revenue (2) in Ireland was down 8.4%, driven wholly by the impact of Cheltenham, where gross win was circa £2 million lower year over year.

Net revenue in Belgium was up 3.3% in the period with amounts staked up 1.5%.

TELEPHONE

Net revenue down £0.2 million or 5.7%.

HIGH ROLLERS

High Rollers generated an operating profit of £7.2 million in the period (Q1 2012: £14.2 million).

MATERIAL EVENTS, TRANSACTIONS AND FINANCIAL POSITION

Net debt has further reduced by £45.8 million from £386.9 million at 31 December 2012 to £341.1 million at 31 March 2013.

On 11 March 2013 the Group announced that it is extending its software licensing arrangements with Playtech as well as signing a new agreement for the provision of marketing services, effective 1 May 2013. The payments for the provision of marketing services is contingent on the results of the Group's Digital business over a five year period and the Group expects to provide the full disclosures required under IFRS 3 Business Combinations with the interim results for the six months ending 30 June 2013.

On 28 February 2013, the Group acquired 100% of the issued share capital of Global Betting Exchange Alderney Limited, which operates the Betdaq exchange business, for an initial consideration of €30.0 million (£25.5 million: 50% in cash and 50% in the Company's shares). The transaction also includes the payment of contingent consideration, linked to the performance of the business over a four year period. In connection with this acquisition, on 28 February 2013 the Group also acquired 10% of the issued share capital of TBH Guernsey Limited for cash consideration of €4.0 million (£3.4 million) with a call option to acquire the remaining shares after four years. The transaction also includes a put option to recover the purchase consideration of €4 million in full.

There were no other material events or transactions that impacted the Group's financial position during the period.

Note: the figures in this trading update are unaudited.

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To participate in the conference call dial, +44 (0)20 7136 2050 or 0800 279 4841 confirmation code 1634515

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Enquiries

Richard Glynn Matt Sharff

Chief Executive Officer Head of Investor Relations +44 (0) 7854 184 808

+ 44 (0) 208 515 5728

Ian Bull Ciaran O'Brien

Chief Financial Officer Director of Corporate Communications +44 (0) 7976 180 173

+ 44 (0) 208 515 5728

Donal McCabe

Director of External Relations +44 (0) 7795 968 482