Ladbrokes Q3-2014 results

Thursday October 23,2014 :  BUSINESS LOOKING UP AT LADBROKES
 
Q3-2014 results show general improvement, especially in revenue and profit growth.
 
The UK and land betting group Ladbrokes has had a tough time of it over the past few years, but its latest Q3-2014 results posted Thursday show sufficient signs of improvement to give hope to investors.
 
The results cover the three month period ended September 30, showcasing encouraging growth in revenue and profits, and highlighting the following KPIs:
 
* Group net revenue up 13.0 percent inc. Australia (up 9.6 percent exc Aussie action);
 
* Group operating profit for the quarter at GBP 33 million, up 94 percent (Q3-2013: GBP 17 million); on track for full year expectations;
 
* Re-confirmed FY 2014 dividend of not less than 8.9p per share;
 
* Strong mobile growth in sportsbook, and Australian business delivering strongly;
 
* Total digital net revenue up 45.9 percent inc. Australian business (up 22.9 percent exc. Australia);
 
* Sportsbook net revenue up 58.2 percent and stakes  up 21.6 percent driven by mobile (up 113 percent); strong gross win margin of 8.9 percent (Q3-2013: 6.7percent);
 
* Gaming returned to growth, with net revenue up 1.4 percent; sequential quarterly increase on Q2-2014 for Games 20.8 percent and Casino 6.6 percent;
 
* Australian business showing strong growth in net revenue (up 172 percent), staking (up 43 percent) and active players (up 124 prcent);
 
* Retail business delivered a better performance, with football betting and machine gambling leading the way;
UK Retail net revenue up 6 percent; better football results delivered improved UK OTC margins of 17 percent (Q3-2013: 14.9 percent);
 
* Improved machines performance, with gross win up 4.9 percent;
 
* OTC net revenue up 6.3 percent benefiting from a strong start to the new football season (stakes up 5 prcent, gross win up 109 percent); but overall OTC staking down 7.9 percent in Q3, reflecting horseracing trends also seen in Q2. Overall OTC staking YTD: up 0.5 percent;
 
* Belgium Retail: net revenue up 21 percent, as the roll-out of SSBTs and Virtual products continues;
* Spain Retail: Joint venture net revenue up 82.9 percent as the roll-out in Catalunya continues;
 
Group CEO Richard Glynn commented:
 
“Ladbrokes is on track. The major operational improvements completed in H1 are now delivering growth.  Our performance in the World Cup and throughout Q3 demonstrate that we are competing successfully and winning customers.
 
"In Digital, our sportsbetting offer continues to perform well with net revenue up over 50 percent driven by mobile. In Gaming we are encouraged to see a return to growth.  In UK Retail, our focus on football continues to deliver good growth.  Our gaming machines performed ahead of our expectations while we have, simultaneously, enhanced standards in social responsibility.
 
"We entered the final part of 2014 with a competitive and attractive offer.  We have achieved much operationally in 2014, with further opportunities to drive revenue in 2015 and beyond. Q4 has started in line with our plans and we will deliver full year results in line with our expectations.”