Ladbrokes reports progress in preliminary FY 2015 results

Highlights in the report include:

* Group net revenue up 3.2 percent, H2 up 5 percent with favourable Q4-2015 sporting results;

* UK Retail net revenue up 2 percent with Q4-2015 delivering strong growth and up 6.5 percent;

* Digital net revenue growth at 12.9 percent with Q4-2015 up 31.4 percent y-o-y and good growth in active players;

* Multi-channel delivered over 35,000 active players – higher than expected – by year end after a full launch at the end of August 2015;

* Australian growth strategy delivering, with active players up 65 percent and net revenue up 71 percent;

* Group operating profit down 35.7 percent at GBP 80.6 million, with high marketing investment exacerbated by increased taxation;

* Exceptional items at GBP 99 million – primarily retail impairments of GBP 53.2 million, Coral merger transaction costs of GBP 17.6 million and shop closure costs of GBP 19.8 million;

* GBP 35 million corporation tax credit primarily from crystallization of historic tax losses;

* Full year dividend at 3p per share (1p interim; 2p final) in line with strategy;

* 2016 expectations unchanged: sustained product and marketing investment planned to drive customer metrics;

* Ladbrokes Coral merger on track with shareholder approval secured and the CMA phase 2 process underway.

Chief executive officer Jim Mullen said:

"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. In Digital in Q4, increased marketing delivered more customers and more staking with Ladbrokes.com net revenue up over 25% and Australia, where the business goes from strength to strength, up over 75%(3).

"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.

"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."

To see the full report, click here: http://otp.investis.com/clients/uk/ladbrokes/rns/regulatory-story.aspx?cid=262&newsid=675473