SBC News Voice of the Sports Betting Industry
FTSE-listed Ladbrokes Coral will be the last ‘industry giant’ to declare its full-year 2016 performance this Tuesday 28 March, as city analysts await the maiden financial results of the newly enlarged enterprise following its £2.3 billion merger closure last November.
Updating the market this January, Ladbrokes Coral governance detailed that full-year 2016 operating profits would be in-line with merger expectations of circa £275-285 million.
However, as Ladbrokes Coral enters its first full-year in combined operations, industry stakeholders will be eager to find out more regarding the enterprise’s long-term strategy as the operator competes in a much-changed global gambling sector.
Company investors will be seeking a full update on Ladbrokes Coral combined synergy plan, in which leadership detailed short-term costs savings of approximately £65 million in its merger prospectus.
Furthermore, Ladbrokes Coral governance will likely issue an update on how the firm will look to absorb its £70 million Ladbrokes tax avoidance penalty issued by the UK Tax Tribunal this February.
As one of the industry’s most intriguing stocks, last week a number of city analysts detailed that they were curious by what full-year 2017 forecasts Ladbrokes Coral governance would detail to the market.
Despite all operators’ claiming a strong start to 2017, following a ‘bookie friendly’ Cheltenham Festival, stakeholders could face new obstacles come April as the UK government presents its review of the industry focusing on fixed-odds betting terminals (FOBTs) regulations and advertising practices.
This March, Ladbrokes Coral CEO Jim Mullen publicly stated that a reduction in FOBTs wagering limits, could lead to the bookmaker closing down a significant number of ‘costly’ London betting shops.
The Ladbrokes Coral leader stated that concerned MPs needed to ‘step back from the fray and take a serious look at the facts’, pointing out that FOBTs had not led to a serious increase in problem gambling. Furthermore, Mullen points that any severe action taken against FOBTs would represent an ‘unjust call’ that would have unjustified repercussions for all industry operators and their employees.
