Ladbrokes reports loss due to tax increment

The English bookmaker posted its first negative result in a decade.

UK.- Ladbrokes posted a loss of o£43.2 million (US$61.1 m) for 2015. The negative result may be due to a £50 million (US$70.5m) increase in tax. In addition, Ladbrokes had to pay £99 million (US$139.6m) for exceptional charge on writedowns and merger costs.

On the other hand, the company reported an increase of 2.1 percent to £1.2 billion (US$1.69b) over the course of the full year and up by 5 percent year-on-year. Digital net revenue grew by 12.9 percent and UK retail net revenue was up 2 percent with growth of 6.5 percent in Q4.

“I am pleased to be able to report a good start to the delivery of the strategy outlined in July. Although it remains early days there is positive progress to report. In UK retail, self-service betting terminals are delivering growth, football is up and our retail team are delivering strong multi-channel growth. The full-year figures reflect the costs needed to undertake significant investment to deliver the strategy as well as facing circa £50 million of increased taxation,” expressed Jim Mullen, Ladbrokes chief executive. “”While it is pleasing to report that after two quarters we have made a good start, we are only at the beginning of the journey.  Therefore, 2016 will see the same focus on winning more recreational customers, excellent operational delivery and a performance driven approach as the basis for delivering on our clear 2017 financial targets,” he added.