Ladbrokes plc (LAD.L), in its first-quarter interim management statement, said it now expects full-year group operating profit to be at the bottom of the existing market range.
During the first quarter, Group net revenue from continuing operations, excluding High Rollers, went up 3.3%, while Group operating profit totaled 37.4 million pounds, down by 13.0 million pounds, largely reflecting about 9 million pounds growth in like-for-like costs and machine taxation in UK Retail as previously flagged and around 6 million pounds less revenue from Cheltenham.
The company said it had always planned for a reduction in group operating profit in the quarter, due to known taxation and cost headwinds in UK Retail and the anticipated second-half weighting of growth in Digital revenues. However, this reduction has been exacerbated by softer trading than expected in the first quarter, mainly in the second part of the quarter, during which Ladbrokes 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.
For comments and feedback: editorial@rttnews.com