Ladbrokes confirm rights issue to raise 275 million


GBP 275 million to be raised

UK online and offline gambling group Ladbrokes plc has confirmed market rumours that it is to seek a rights issue to raise more cash .

In a statement Thursday the British bookie firm confirmed that it will seek to raise GBP 275 million through a discounted rights issue.

The company also revealed third quarter results showing net gaming revenue down 15 percent, compounding lower revenues recorded in the first half of the year .

Ladbrokes spokesmen said the company would offer a fully underwritten issue of 301 million new shares at 95p a share, a discount of almost fifty percent on yesterday's closing market price of 181.2p.

The cash raised in the issue will be used to reduce a GBP 962 million debt burden down to a more manageable GBP 687 million and to reinforce the balance sheet with extra capital.

Explaining the weak Q3 results, the company said these were the result of a bad run of losses to football gamblers, in a season where the first 66 Premier League matches saw just four draws.

Poker net revenue over the three-month period underperformed, falling 21 percent, and operating profits slumped badly by 58 percent to GBP 22.4 million.

"The rights issue is something the board has been considering for some time," chief exec Chris Bell told reporters. "Bank lending has been difficult over the last 12 months. It has been a difficult quarter, particularly due to the football results. We have got to take the level of debt down and this puts the right capital structure in place for the future."

On the positive side, Ladbrokes casino and bingo revenues in the third quarter were up 5 percent and 3 percent respectively.

Investors will not be happy with the news that the company intends to pass on a final dividend this year, although it hopes to be better placed to pay an interim in 2010.

GBP 2.6 million savings in staffing and improved operational efficiency have been identified by the company in its e-gaming division, which will be moving to Gibraltar in order to compete from a more favourable tax regime. Further savings of some GBP 3.9 million will arise next year.

General Gambling News

Login to post a comment:


 
 

Click Here to register a new account

What's going on right now!

4mins ago someone from Brazil read 888 Casino review

Casino Community

Share this page on:
Follow LCB on:
Follow LCB

Casino Of The Month

Casino of the Month

In the last 24h

Totals

  • New Members
    22
  • Members Online
    361
  • Guests
    1,777
Highest Community Rated Online Casinos
NextCasino
  (152 Ratings)
Bet365 Games
  (165 Ratings)
Unibet Casino
  (133 Ratings)
CasinoLuck
  (218 Ratings)
Betsson Casino
  (210 Ratings)
Betsafe Casino
  (181 Ratings)
Spin Palace Casino
  (118 Ratings)
Mr Green Casino
  (281 Ratings)
Redbet Casino
  (147 Ratings)
Guts Casino
  (174 Ratings)
Slotty Vegas
  (111 Ratings)
Sin City Casino
  (99 Ratings)
32 Red Casino
  (305 Ratings)
Vera John Casino
  (176 Ratings)
Winner Casino
  (340 Ratings)
Intertops Red Casino
  (121 Ratings)
BETAT Casino
  (191 Ratings)
ComeOn Casino
  (237 Ratings)
Liberty Slots Casino
  (183 Ratings)
Thrills Casino
  (132 Ratings)
Casumo
  (135 Ratings)
24hBet
  (27 Ratings)
Intertops Casino Classic
  (109 Ratings)
Ladbrokes Casino
  (155 Ratings)
Osiris Casino
  (33 Ratings)
Tetraplay Casino
  (27 Ratings)
Royal Vegas Casino
  (132 Ratings)
Jetbull Casino
  (103 Ratings)
Vegas Red Casino
  (190 Ratings)
3Dice Casino
  (250 Ratings)


Follow LCB on Facebook Follow LCB on Twitter Follow LCB on Pinterest Follow LCB on Google plus