Ladbrokes reports first major loss in ten years

Ladbrokes is just to complete its merger with Coral, and it couldn’t come at a more urgent time. This week, Ladbrokes reported that it has made an annual loss for the very first time in over 10 years. That will come as a shock to many in the online gaming world.

Tax Avoidance

As one of the leading UK high-street bookies, and online casino and sports betting websites, the thought of Ladbrokes losing money is quite surprising. According to them, the losses stem from their digital market. Ladbrokes also lost £43 million due to a tax avoidance case last year. All of this comes on the back of £37.7m in profit they made the year before.

Spent 99M

Ladbrokes is keen to point out that if it had not been for the lawsuit, then they would have been in the black. Ladbrokes are also eager for people to know that they recently spent £99m trying to form the merger with Gala Coral, as well as do up its Irish outlets. According to Ladbrokes then, if you discount those two things (which aren’t normal expenditure) then they are quite okay. Still, expenditure is expenditure is it not?

Back on Track

According to Jim Mullen, who is the CEO of Ladbrokes, the company aims to get back on track in time for 2017. Many are hoping that the merger between Ladbrokes and Gala Coral may even kick-start the return of profits to the major casino and sports betting company.

Make or Break Time

Things are hanging by a thread for Ladbrokes. It is make or break time. If the merger continues to go ahead as planned, Ladbroke could be making hundreds of millions by 2017. Should the deal go sour, then Ladbrokes could potentially be on the verge of collapse. Ladbrokes needs to cut spending, and hope that the deal continues to progress as it has been doing.

Leave a comment