Ladbrokes to maintain annual dividend despite profit slump
Bookmaker Ladbrokes said it will not cut its 2015 dividend, despite posting a 14% drop in annual profit.
FTSE 250
20,749.90
16:49 17/05/24
FTSE 350
4,631.57
16:49 17/05/24
FTSE All-Share
4,584.23
17:09 17/05/24
Ladbrokes Coral Group
173.50p
16:04 28/03/18
Travel & Leisure
7,747.55
16:49 17/05/24
In 2014, revenue grew 3.8% to £1.16bn but due to a £8m hit on Boxing Day operating profit fell to £125.4m, falling slightly short of consensus forecast of £128.8m, while profit before tax fell 13.5% to £98m.
A host of poor performances in its football market hit profit at the bookmaker’s UK arm, the company’s largest division, which saw profit fall 11%.
However, the group’s digital business fared much better, reporting a 71% increase in profit.
Britain’s second biggest bookmaker has struggled to keep pace with its rivals in the online sector and was forced to close 89 loss making stores in 2014, with 60 more closures planned for 2015 amid the he impending rise in Machine Gaming Duty and new UK regulations.
In December, the group began a search to replace outgoing chief executive Richard Glynn with a figure capable of leading a greater push online.
“We are increasingly confident that online can deliver underlying growth in the current year given the momentum it exited the period,” analysts at Shore Capital said in a note.
“However, we remain cautious over retail and its ability to reposition towards football and so would expect further underlying declines.”
Analysts had expected the group to cut its 2015 dividend to help fund marketing expenses, but the group said it will maintain an 8.9p dividend per share this year.
"Whilst recognising there are regulatory headwinds, Ladbrokes is confident in its plans for 2015," Glynn said.
Ladbrokes shares were up 1.25% to 115.63p at 08:20 on Monday.