Ladbrokes 2012 Financials Reveal Strong Growth

UK based betting giant Ladbrokes has published its full year 2012 financial results, noting strong growth and higher revenues.

Key financial indicators company wide for the year ending December 31st, 2012 were:

• Group net revenue grew by 7.4% to £1,053.3 million

• Group operating profit of £206.1 million, up 8% (up 25.8% including High Rollers)

• 14.1% increase in full year dividend

• Net debt reduced by a further £67 million to £386.9 million

Retail results were:

• UK Retail operating profit of £180.7 million - up by 18.6%.

• Consistent growth in UK Retail OTC net revenue, 3.8% up for the year

• Machines net revenue growth of 13.9%, roll out of next generation terminal starting Q4,2013

• 100 net new UK shop openings planned for 2013

• Operating profit in European Retail up over 50%

Digital results for 2012 were:

• Digital net revenue growth of 9% driven by sportsbook after a strong Q4

• Enhancements to trading contribute to significant increase in sportsbook margin, up 100 basis points

• Full launch of new sportsbook website to UK customers during Q1,2013

• Mobile platform on track to go live in Q2,2013. Mobile net revenue up 93.6% in 2012

• Betdaq acquisition in 2013 will enable a differentiated offer and one stop shop for customers

Commenting on his company's performance Ladbrokes CEO Richard Glynn said: “We are continuing to transform Ladbrokes, with the resilience and reinvigoration of the UK Retail estate driving another year of growth in profit per shop."

"The development of the Digital business is progressing well and our investment in trading systems is generating improved quality of earnings. Ongoing business momentum has enabled us to deliver a strong group performance with growth in revenue, operating profit and dividend."

"2013 will see us continue to drive investment in areas where we see opportunities to grow the business. We will accelerate our programme of shop openings, focussing on areas of unmet demand. In machines, whilst the market is becoming much more competitive, we expect to generate continued growth through the use of Odds On, more exclusive games and the roll out of the latest new terminal towards the end of the year."

"In Digital, after a delay during 2012, we will complete the roll out of our new sportsbook and mobile platforms in Q1 and Q2,2013 respectively and look to improve our capability around customer relationship management. We expect these developments to drive growth in Digital revenues and earnings, particularly during the second half of the year."

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