City issues Red Alert, as Ladbrokes forecasts H1 2015 losses

As Ladbrokes governance plans to announce its Half Year 2015 performance this Tuesday, London business analysts and investors fear the worst for the bookmaker after writing down the value of its retail betting portfolio. 

Ladbrokes are set to record an impairment charge of between £75-85 million, which will guarantee that the operator records a pre-tax loss for H1.

New CEO Jim Mullen who has hit UK business headlines with the planned £2.3 billion merger of Ladbrokes and Gala Coral, will report on his first operating quarter having taken over from Richard Glynn this March.

Under Mullen’s guidance, Ladbrokes has carried out a review of retail betting operations in the UK and Ireland, focusing on discontinuing under-performing retail points. Mullen the former Digital Director of Ladbrokes, has outlined that a fresh start for Ladbrokes would see the operator focus on boosting digital operations.

Mullen is currently awaiting approval of the Gala Coral merger by the UK competition authorities, however the executive teams of both parties remain confident that the deal will hold up against its examination.

London business analysts who have predicted tough times for major UK gambling operators, further expect Ladbrokes to follow current market performance trends and be further hit by new POC and betting shop charges, following last Friday’s announcement that competitor William Hill had suffered a 35% drop in pre-tax profits to £78.5 million.