UK based betting giant Ladbrokes plc has released its full year 2013 financial results, noting a drop in pre-tax profits of 66% and a 26% drop in profits for the group's retail locations.
Key financial indicators for the year ending December 31st, 2013 were:
Group net revenue down 0.6%
Pre-tax profits fell 66% to £67.6 million (2012: £200.7 million)
Group operating profit of £138.3 million, down 32.9%
Underlying earnings per share down 36.4% to 11.7 p
Full year dividend maintained at 8.9p (2012: 8.9p)
Full year exceptional costs of £51.6 million largely driven by costs of transition to Playtech products and platforms, business restructuring and impairment of shop licenses
High Rollers contributed £5.9 million of operating profit (2012: £30 million)
Most concerning though may be the large 74% drop in Ladbrokes' profits for its digital division.
Commenting on his company's performance Ladbrokes CEO Richard Glynn said: “While our financial results for 2013 were disappointing, we made real operational progress which has continued into this year. We remain confident about the direction of the business and the momentum we are creating."
“As we have made clear, H1 is about delivery and H2 is about growth. Our immediate focus is on the completion of our remaining platform, product and capability upgrades, notably single wallet and CRM, which will begin to deliver tangible benefits from the World Cup onwards."
“The early evidence from our changes to the desktop sportsbook and to our mobile offer are encouraging, giving us confidence that where our product upgrades and improved capabilities converge behind our brand, we have a powerful proposition. We look forward to competing even harder through the course of this year."