BZW downgrades Ladbroke as lottery takes toll
Wednesday 30 August 1995
Rumours that the chief executive of Ladbroke's hotels subsidiary, Hilton International, is set to leave the group also affected sentiment. Tomasso Zansotto only joined the group 18 months ago but is now expected to leave the group next year.
The shares dipped 2.5p to 164.5p when BZW reduced its forecast for the full year from pounds 168m to pounds 155m. The downgrade comes ahead of Ladbroke's half-year results, which are due tomorrow.
Ladbroke has been hit by the success of the National Lottery, which has been taking as much as pounds 100m a week. However the sales of the Instant scratch card game have fallen from a high of pounds 42m and sales have been running at less than pounds 30m for the last four weeks.
The heatwave has also made the going tough for the bookmaking business. Harder racetracks have led many owners to pull their horses out of races because of fears of injury.
This reduces the size of the field and increases the chances of the favourite winning, which puts pressure on bookies' margins.
The downgrade follows an announcement by Ladbroke last month that it would cut 200 jobs in its racing division as a result of competition from the National Lottery.
Bookmaker groups such as Ladbroke and Coral are now hoping for assistance from the Government. They are expecting a cut in racing duty in the November Budget, and a relaxation in rules restricting advertising for casinos. Bookmakers are also hoping they will be allowed to introduce up to two fruit machines in each shop from next year.
Ladbroke said in May that the lottery had affected sales, which had declined by about 4 per cent in the first quarter of the year. Other bookies, such as Willliam Hill and Coral, have also reported slower sales.
Investment Column, page 18
- 1 Apple has installed security backdoors on 600m iPhones and iPads, claims security researcher
- 2 UK pirates will get four warning letters a year
- 3 Fight Club 2: Chuck Palahniuk sequel is a 'meta-fictional comment on the cultural response to the original'
- 4 Is Gideon Levy the most hated man in Israel or just the most heroic?
- 5 Israel-Gaza conflict: Deadly flechette shells 'used by Israeli military in Gaza Strip’
Malaysia Airlines flight MH17 crash: 'Nine Britons, 23 Americans and 80 children' feared dead after Boeing passenger jet is 'shot down' near Ukraine-Russia border
Malaysia Airlines MH17 crash: Vladimir Putin is given 'one last chance' to end hostilities in Ukraine
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
The truth about conspiracy theories is that some require considering
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: victims’ bodies bundled in black bags and loaded onto trains
iJobs Money & Business
£850 - £950 per day: Orgtel: Programme Director - Conduct Risk - Banking - £85...
£45000 - £50000 Per Annum + excellent benefits: Clearwater People Solutions Lt...
£250 - £300 per day + competitive: Orgtel: Finance Manager - Accountant - Bank...
£100000 - £120000 per annum + BONUS + BENEFITS: Harrington Starr: A leading fi...