Ladbrokes share price drops on trading update

<p>Ladbrokes has warned trading was worse than expected in the first quarter.</p>

Ladbrokes saw its share price drop after the company revealed its trading during the first three months of the year was worse than it had expected.

The firm revealed in a statement that profits for the whole year were likely "to be at the bottom" of analysts' forecasts, with reasons given for the fall including a drop in profits from the Cheltenham Festival and lower revenues earned from high value gaming customers.

Chief executive Richard Glynn explained Ladbrokes is making progress on its "reinvigoration strategy" despite trading conditions he described as difficult.

Stocks in the bookmaker fell by close to six per cent this morning (April 15th) on the back of the news and at 08:19 BST were recorded at 194.50.

Ladbrokes revealed that its operating profit fell to £37.4 million in the three months to March, down £13 million from the previous three months. This is expected to have a major impact on its earnings for the year as a whole.

Learn about the sterling and forex trading at City Index.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.