LONDON (dpa-AFX) - Shares of Ladbrokes Plc (LAD.L) rose more than 4 percent on Thursday morning, after the company reported an 8.9 percent growth in first-quarter revenues and a 3.9 percent increase in operating profit. The betting and gaming company also said it is in line with the board's expectations for the full year.
In an interim management statement, Ladbrokes said its operating profit for the quarter increased to 50.4 million pounds, reflecting growth in UK and European Retail and the anticipated reduction in Digital due to a planned increase in investment.
The company expects that its investments in digital marketing will drive growth in revenues, particularly in UK sportsbook, which was up 22 percent. Total Digital net revenue grew 5.9 percent during the quarter, driven mainly by progress in sportsbook.
Richard Glynn, chief executive of the company said, 'This has been another period of progress for Ladbrokes. UK Retail saw another quarter of strong growth in machines revenue. OTC staking remains resilient and gross win margin, helped by a better Cheltenham festival, was at the upper end of our historical range.'
UK Retail total net revenue increased 9 percent from a year ago. Machines continued to grow strongly with a 21.7 percent growth in net revenues. Average gross win per terminal week across the estate was 923 pounds, up from 791 pounds in the same quarter last year. During the period, the company opened 10 new shops and closed 1 in UK Retail.
Group net revenues from continuing operations, excluded High Rollers, the company noted. High Rollers generated an operating profit of 14.2 million pounds, higher than 4.4 million pounds in the previous year.
LAD.L is currently trading at 170 pence, up 7.2 pence or 4.42 percent, on a volume of 7.81 million shares, against a three-month average volume of 3.5 million shares on the LSE.
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