Ladbrokes Shares Down
Found this article today so hopefully they will try and get more business by offering more free bets.
Ladbrokes shares slip as punters stay away
Bookmakers have had a harder time than expected during the recession, but recent updates from William Hill and Paddy Power showed signs of recovery. Today, though, Ladbrokes said the number of bets placed in its shops continued to decline.
In a statement for its annual meeting, the company said net revenue for the four months to the end of April has fallen 6%, with UK retail takings down 11%. The amount staked over the counter fell by 10% - although things have picked up a little since January's poor weather - with the average stake per slip dropping 1.1% to £8.10. Its online business was also weaker, mainly due to poor performances from the poker and casino businesses. Ladbrokes' shares have fallen 2.8p to 148p on the news, and its recently appointed chief executive Richard Glyn said:
The economic environment remains challenging and the strength of UK consumer confidence post the election is difficult to gauge. However group profitability year to date has been broadly in line with expectations.
Nigel Parson at Evolution Securities put a neutral rating on the shares and commented:
Today's AGM statement showed how much new Ladbroke chief executive, Richard Glynn, has to do in closing the performance gap with William Hill. Given that William Hill is also a 'recovery' play on a similar rating; it makes more sense us to buy William Hill as it is the lower risk option.
We interpret 'broadly in line' as code for 'small downgrade' and will be reviewing our forecasts in that light.
They need to drop the silly 10 x WR on the casino bonuses, people will come flocking back.
Originally Posted by madmick50
The shares are not really down much they are still over the Rights Issue price and this news was priced in. Everywhere is off the recent highs.
A share price which has crashed is 888.com who has almost halved from 120ish to 60ish last week, now bounced to 70s but looking weak. Ladbrokes shares are stable in comparison 888 is either in trouble or the shares are a screaming buy:
They have been buying back their own shares with the cash reserves they have which indicates the company has a lot of confidence. Investors think otherwise though.
Have a plan and stick to it
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Ladbrokes | eGaming Review