SBC News Voice of the Sports Betting Industry
Ahead of its annual results publication on Thursday 26 February, Ladbrokes share price suffered its worst fall in almost a year after investment firm Deutsche Bank warned investors of harder times ahead for the London listed sports betting operator.
Deutsche Bank expects the operator to publish a further year of sizeable market-share losses, and for Ladbrokes profitability to be stalled for a further year.
Deutsche Bank Analyst Richard Carter, backed his firm’s position by stating to the Evening Standard Online:-“We now believe that the root of the problem is deeper and more structural than we had previously thought. It will require investment, probably further restructuring and even a strategic rethink.”
It is expected that Ladbrokes will hold back any corporate dividends when 2014 results are announced. The company is further expected to give an update on the replacement of CEO Richard Glynn
Sunday Times Business Correspondent Matthew Goodman stated that it was unclear whether Glynn’s replacement would adopt the same strategic policy or choose a new direction for the operator.
With rises in Tax for both its retail and online betting operations Ladbrokes Plc face a tough 2015, in which the operator stated that it would catch up with main competitor William Hill.
On Monday news reports detailed that Ladbrokes was set to close up to 60 UK betting shops. UK business commentators have stated that the money saved on Ladbrokes retail division will be shifted to growing and optimising its online gaming/betting division which faces tough competition from several UK betting focused operators (William Hill, Paddy Power, Coral)
