Ladbrokes Record Significant Drop In Profits

Posted by Kathleen Girvan on Nov 04, 2015 Posted in UK Poker News | No Comments »

ladbrokes profitOne of the world’s largest gambling companies has recorded a serious drop in profit for the third quarter of 2015.  In recently released trading updates to the London Stock Exchange, UK bookmakers Ladbrokes (which runs a successful online poker website) has admitted to investors that they have suffered significant dips in their profits this year so far.

Ladbrokes, which runs the Ladbrokes Poker website, has experienced plummeting earnings in the three months before the end of September 2015, down 56.7% to £14.3 million (before interest and taxes) when compared to the same period in 2014. The have blamed the disappointing figures on unfortunate external circumstances, primarily the effects of higher taxes on betting and gambling. Ladbrokes management have pointed out that the increased duty on gaming machines and the new Point of Consumption Tax which is imposed on all online bets, introduced in December last year. This new tax has been devised by the government to raise £300m a year for the Treasury. It also requires gambling companies offering their services in the UK to pay the same amount of tax, regardless of where they are based.

The serious drop in profits for a top UK gambling company is a concern for gambling companies nationwide, from casino and poker sites to high-street betting shops. Ladbrokes remains outwardly confident that they can bounce back, and their proposed merger with Coral still on track (although the deal is still awaiting approval from the Competition and Markets Authority, who regulate such mergers) Ladbrokes is hopeful that this development will give their profits a significant boost. Financial commentators however have predicted a less than rosy forecast for gambling companies, as they reckon profits will remain low for the near future.

 



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