Overview
Chairman's statement
Ladbrokes continues on its journey to modernise the business. While we are disappointed that the financial results do not reflect the progress we are making, the strategy is the right one.
Peter Erskine Chairman
Highlights
Percentage of Group net revenue(1)
- Shops continue to have an enduring appeal to the betting customer.
- Digital, particularly Mobile, is the fastest growing area of betting and gaming.
- Retail continues to offer an entry point into non-UK markets.
- While telephone is a shrinking market as people go mobile, it still appeals to many customers.
Operating profit(1)(2)
£138.3m-32.8%
Net revenue(1)(3)
£1,111.2m-0.6%
Dividend (pence per share)
8.9Held
(1)Excluding High Rollers.
(2)Profit before tax, net finance expense and exceptional items.
(3)Prior year adjusted to reflect the change in machine taxation from VAT to Machine Games Duty (MGD)
Our business at a glance
UK RetailNet revenue(1)(3)£800.9m-0.3%
European RetailNet revenue(1)(3)£128.8m+1 .3%
DigitalNet revenue(1)£175.0m-1 .7%
TelephoneNet revenue(1)£6.5m-31 .6%
(1)Excluding High Rollers.
(3)Prior year adjusted to reflect the change in machine taxation from VAT to Machine Games Duty (MGD).
Our business model
Ladbrokes aims to generate long-term value to shareholders and an exciting gambling experience to customers. Our business is built on bookmaking expertise and is delivered through Retail and Telephone operations as well as Mobile and Digital services. We are a brand leader in the UK, Ireland and Belgium and we are developing businesses in other key territories.
Strategic priorities
Retail excellence
Retail betting has evolved to become a genuine leisure experience over recent years in both our core market and overseas. We strive to innovate continually, providing customers with a differentiated product offer, whilst optimising both margin and operational efficiency.
Digital capability
The digital betting and gaming market continues to grow and is becoming increasingly competitive. We aim to provide flexible technology which allows us to deliver the broadest range of products to customers.
Pricing, trading and liability management
The utilisation of a proprietary trading platform, enhancement of algorithims and increasing use of automated trading tools enables us to improve liability management and reduce earnings volatility.
Customer and brand
Ladbrokes is still the most recognised betting brand in the UK. We invest to evolve the brand with an emphasis on excitement. The development of our offer, be it in Digital or Retail, is centred around improving the experience of customers.
Regulatory leadership
The continued evolution of tax and regulation is a key influence on the development of our business. Ladbrokes seeks to play a lead role in ensuring that the Government and all regulatory authorities fully understand our industry and its significant contribution to the economy, employment and taxes.
Strategic report
Chief Executive's review
Our financial results for 2013 masked real operational progress and we remain confident about the direction of the business.
Read moreChief Executive's reviewDownload the PDF How we run the businessDownload the PDF Our strategic prioritiesDownload the PDF
Financial review
In 2013 there has been substantial operational progress that will benefit in the second half of 2014 and beyond.
Ian Bull Chief Financial Officer
Read moreRisk and how we manage them
We have adopted an integrated approach to our risk management and responsibilities.
Corporate responsibility at Ladbrokes
Behaving responsibly has always been a priority for Ladbrokes and Fair Play is built into the way we do business.
Key events in the calendar in 2013
March - April
£40m staked
Cheltenham Festival – jump racing’s premier four days saw over £40m staked with Ladbrokes.
The Grand National – the nation’s favourite race with over 4m bets placed in Retail alone. The unfancied Auroras Encore won at 66/1, a very good result for shareholders.
66/1
May
The Champions League Final was the biggest single event of the year for football with 75,000 people placing bets on the match. The win by favourites BayernMunich helped make the event a good one for customers.
75,000 people
51,000 bets
Also in May, the FA Cup Final saw 51,000 bets placed with nearly a million pounds staked. Wigan’s win surprised the favourites and customers and culminated a tournament where we had several market-leading offers to drive business.
June
Andy Murray’s historic victory at Wimbledon saw the nation celebrate and, with 200,000 bets placed throughout, it was also a tournament where patriotism was backed by belief. That said, even in his finest hour Andy Murray’s straight sets success saw us win as most people had put money on a more nail-biting finish.
25/1
Phil Mickleson’s win at The Open Championship was the worst result of any golf tournament in recent history with Phil obliging from 25/1. Equally painful were the wellbacked golfers who filled the next five places, meaning that the worst six possible results finished in the in the top six spots. We calculate the chances of that happening were 500,000/1 and this was a real case of the long shot doing us no favours.
July
Golf’s US Open at Merrion saw 140,000 bets placed with us. Justin Rose is a perennial favourite for our customers so his success, although great for European golf, was not great for us. However, we managed to keep our heads in front as Tiger Woods’ and Rory McIlroy’s failure helped manage our position.
140,000 bets
Ruler of the World wins the Derby with 40,000 bets riding on his success. Despite this high level of backing, his defeat of the well fancied Dawn Approach means it is a good result for Ladbrokes.
40,000 bets
August - December
August
The football season kicks off in August but it is a Champion’s League day in November which hits us hardest. Seven from seven favourites oblige along with Manchester United at combined odds of 33/1 to give us the worst single day’s results for football in the entire year.
33/1
November
The rugby internationals were not kind on the weekend of 16/17 as every result goes the customers’ way. With 35,000 bets staked, it was a good day for our rugby betting customers.
£1m windfall
December
A customer ends 2013 on a high after becoming a millionaire from just a £4 stake. The shop customer landed a £1 million windfall on 28 December for an outlay of just £4 after he correctly matched six numbers on the popular lotto style draw ‘49s’.
Looking ahead to
The biggest event of 2014 is likely to be the Football World Cup in Brazil. As well as attracting a number of ‘one-off’ customers, experience shows that after a major tournament we see growth in the football business at the start the following season.
66/1 The price England have already been available at for customers signing up to our new Mobile offer.
48 Number of Football World Cup matches
Corporate governance
The Board provides strategic leadership and oversight. It is committed to high standards of corporate governance throughout the Group's operations.
Corporate governanceDownload the PDF Board of DirectorsDownload the PDF Directors' reportDownload the PDF Directors' remuneration reportDownload the PDF
Financial statements
Consolidated financial statements
- Consolidated Income statement
Download the PDF | Download the XLS - Consolidated statements of comprehensive income
Download the PDF | Download the XLS - Consolidated balance sheet
Download the PDF | Download the XLS - Consolidated statement of changes in equity
Download the PDF | Download the XLS - Consolidated statement of cash flows
Download the PDF | Download the XLS
- Notes to the consolidated financial statements
Download the PDF - Statement of directors' responsibilities in relation to the consolidated financial statements
Download the PDF - Independent auditor's report to the members of Ladbrokes plc on the consolidated financial statements
Download the PDF
Financial statements
Company financial statements
- Company balance sheet
Download the PDF | Download the XLS - Notes to the Company financial statements
Download the PDF - Statement of directors’ responsibilities in relation to the Company financial statements
Download the PDF - Independent auditor’s report to the members of Ladbrokes plc on the Company financial statements
Download the PDF
- Five year financial record
Download the PDF | Download the XLS - Shareholder information
Download the PDF - Corporate information
Download the PDF - Glossary
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