Shares of Ladbrokes Plc (LAD.L) dropped 9 percent Thursday morning after the company said it expects digital profits in the first half to be down "further than anticipated" at around half that delivered in the first half of 2011. However, the company expects to meet market expectations for the first half, helped by its performance in retail businesses.
The company was originally anticipating a year-over-year decline in digital profits. Phasing of its investment program, increased marketing expenditure, planned operational losses associated with new international licenses and withdrawal from certain international markets, impacted the results, Ladbrokes noted.
However, the betting and gaming company said it is confident that ongoing development of the digital business will help it grow Digital profits in 2013 and beyond.
In April, the company had reported an 8.9 percent growth in first-quarter revenues and a 3.9 percent increase in operating profit, reflecting growth in UK and European Retail.
Total digital net revenue grew 5.9 percent during the quarter, driven mainly by progress in sportsbook.
Ladbrokes is scheduled to report its first-half results on August 2.
LAD.L is currently trading at 158.3 pence, down 15.5 pence or 8.92 percent, on a volume of 6 million shares on the LSE.
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by RTT Staff Writer
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