Investment: Odds lengthen for Ladbrokes
Friday 13 November 1998
True, profits were around 20 per cent ahead of last year, driven by the World Cup betting bonanza and solid growth in the Hilton European hotels. But Ladbroke's devil is in the detail. On the hotels side, which provides around 60 per cent of group revenue, the terrorist threat in Kenya and the Middle East has scared-off tourists, while the financial turmoil has savaged Asian reservations. In the UK, which contributes half of the division's profits, growth is slowing, especially in London where big corporate customers have slashed travel costs.
The betting division has traditionally been more recession-proof than hotels and underlying growth remains good. However, you can expect a short- term downturn as the World Cup effect wears off, while the forced sale of Coral will deprive Ladbroke of valuable critical mass.
The flop of the new football lottery game "Easy Play", with sales sharply below Ladbroke's expectations, will result in a pounds 9m exceptional loss at the year-end. Looking ahead, much will depend on which way the UK economy goes. If it is a soft landing, Ladbroke should be able to cushion the blow to the hotels business with the steadyish earnings of the betting shops. Anything worse than that and 1999's figures could look bleak .
- 1 'Kidnapped boy may have been abused and murdered by VIP paedophile ring,' say police
- 2 Ridley Scott on Exodus, Gods and Kings casting: 'I'm not going to get it financed if my lead actor is Mohammad so-and-so from such-and-such'
- 3 Girl, 7, gets Tesco to remove 'stupid' sign suggesting superheroes are 'for boys'
- 4 This letter from a reader explains why women can’t play football
- 5 'You should come to my house and eat cheeses with me': 4-year-old sends adorable love letter to girl at school
Black Friday 2014: Opening times for Asda, John Lewis, GAME, PC World and Argos
Miss Honduras Maria Jose Alvarado's stylist Luis Alfredo Garcia is found stabbed to death
Dr Lam Hoe Yeoh: Voyeur doctor jailed for eight years after using network of hidden cameras to film patients, colleagues and friends on the toilet
'You should come to my house and eat cheeses with me': 4-year-old sends adorable love letter to girl at school
Scientists predict green energy revolution after incredible new graphene discoveries
Ukip says babies born to immigrants in the UK should be classed as migrants – which would include Nigel Farage’s own children
Rochester by-election: Ukip gains second MP as Tory defector Mark Reckless holds seat
'Beast of Bolsover' Dennis Skinner takes Ukip MP Mark Reckless to task moments after he is sworn in
The young are the new poor: Sharp increase in number of under-25s living in poverty, while over-65s are better off than ever
Tamir Rice: 12-year-old boy playing with fake gun dies after being shot by Ohio police
Bollywood actress Veena Malik sentenced to 26 years in jail for blasphemy after appearing in mock TV wedding scene
iJobs Money & Business
£Attractive Package: Citifocus Ltd: Chartered accountant (ACA or CPA), must be...
£6000 - £60000 per annum + Bonus and Benefits: Ampersand Consulting LLP: UI De...
£18000 - £23000 per annum + Comission: SThree: SThree, International Recruitme...
Negotiable: h2 Recruit Ltd: A rapidly expanding, global Software/ SaaS Vendor ...