Ladbrokes Reports Financial Loss for 2015
UK bookmaker, Ladbrokes, has released its financial results for 2015, reporting their first negative result in a decade. The company reported a loss of £43.2 million for 2015, a significant loss after their £37.7 million profit in 2014.
The company’s revenue rose 2.1 percent to £1.2 billion over the year and their results for the second half of the year rose 5 percent compared to the same time last year. Digital net revenue increased by 12.9 percent over the year.
The company loss can be attributed to a new 15 percent point of consumption tax with £50 million going to taxes and a further £99 million going to exceptional charge on write downs and merger costs. £19.8 million can be attributed to their costs relating to the merger with rival Coral.
“I am pleased to be able to report a good start to the delivery of the strategy outlined in July,” said chief executive Jim Mullen. “Although it remains early days, there is positive progress to report.”
“In UK retail, self-service betting terminals are delivering growth, football is up and our retail team are delivering strong multi-channel growth. The full year figures reflect the cost needed to undertake significant investment to deliver the strategy as well as facing circa £50 million of increased taxation.”
Ladbrokes’ UK Retail revenue rose 2 percent over the year with 6.5 percent growth in Q4. Their Australian operations experienced a 65 percent rise in activity which resulted in a 71 percent increase in net revenue.
Going forward, Ladbrokes can expect new competition from Australia’s largest bookmaker, Tabcorp which partnered with The Sun newspaper in the UK, allowing Tabcorp to enter the UK gambling market with the launch of Sun Bets bookmaker in 2016.
April 16, 2017