Ladbrokes plc (‘the Group’) today announces its results for the year ended 31 December 2009.
- Group net revenue(1) of £963.7 million (2008: £1,052.9 million)
- Group operating profit(1)(2) of £168.5 million (2008: £250.7 million)
- High Rollers operating profit of £66.9 million (2008: £80.1 million)
- Interest(3) of £44.1 million with blended interest rate of 4.9%
- Profit before tax(3) of £191.3 million (2008: £265.6 million)
- Effective tax rate(3) of 15%
- Earnings per share(3) of 21.7 pence (2008: 32.2 pence(4))
- Cash generated by operations was £226.0 million
- Group net debt was £694.2 million at 31 December 2009 (31 December 2008: £987.1 million) with undrawn committed bank facilities of £428.1 million
- As announced at the rights issue, the Group will not be paying a final dividend, giving a total dividend for 2009 of 3.5 pence per share.(5)
(1) Continuing operations excluding High Rollers.
(2) Profit before tax, finance costs and non-trading items.
(3) Before non-trading items for continuing operations.
(4) Adjusted for the bonus element of the rights issue announced on 8 October 2009.
(5) 2.98 pence per share after adjusting for the bonus element of the rights issue.
- Significant cost actions taken will benefit the business in 2010
- Material upside potential from capturing machine profit opportunity – trial progressing
- Potential 2010 benefit of return to more normalised UK Retail gross win margin
- Sportsbook moved to Gibraltar ahead of schedule – £7.5 million 2010 benefit expected
- New online Sportsbook successfully launched in January 2010
- Group wide World Cup opportunity to be capitalised upon
- Today announced a tender offer for the 2012 Notes and a proposal to issue new seven year Notes to extend our debt maturity profile
Ladbrokes Chairman, Peter Erskine, commented:
“2009 was a challenging year for Ladbrokes. We were impacted by the deteriorating economic environment and the industry-wide issue of lower third quarter gross win margins. We are concentrating on building on our strengths (the Ladbrokes’ brand, bookmaking expertise, innovation and creativity) and, importantly, are relentlessly focused on execution and delivery.
“We recognise the likely challenges from rising unemployment and more general consumer spending headwinds. However, Ladbrokes continues to be a profitable and cash generative business with strong positions in markets that remain attractive and we have a strong platform to continue to grow our online business. We have strengthened our balance sheet and are taking decisive cost actions that will leave Ladbrokes well positioned when the upturn comes.
“In January 2010 we announced that Chris Bell will be stepping down from his role as Chief Executive in early summer. The search process is underway and we shall update the market in due course. Chris has made an invaluable contribution to the growth and development of Ladbrokes during his 20 years with the Company, nine of which were as Chief Executive. The Board is grateful for his support in providing continuity during the transition period.”
For more information please call:
Brian Wallace Group Finance Director Kate Postans Head of Investor Relations Ciaran O’Brien Head of Public Relations Tel: +44 (0) 20 7355 0340
Brian Wallace Group Finance Director
Kate Postans Head of Investor Relations
Ciaran O’Brien Head of Public Relations
Tel: +44 (0) 20 7355 0340