From the Blue Index blog

Dont bet on Ladbrokes
May 15th, 2009

Shares in bookmaker Ladbrokes (LAD) were looking like a good recovery play up to this morning, having regained over 50% of their value after the October low of 133p last year

But this morning, Ladbrokes reported a 34% slump in profits for the first four months of 2009. Profits from big spending high rollers tumbled to just GBP25m from GBP40m in 2008, with punters enjoying a particularly good Cheltenham Festival in March. These abnormal gross win margin levels, increased free bets and unfavourable cost phasing in eGaming against the previous year resulted in the profits slump, although CEO Chris Bell was at pains to point out the rate of decline is not representative of our expectations for the year, and he said the decline has already given way to more normal trends in May. And overall, added Chris Bell, the general resilience of the business and strong cost controls gives us confidence in the outturn for the full year.

But brokers Noble, Shore Capital and Daniel Stewart all see the results as disappointing and weaker than expected, particularly given that results at rival William Hill are strong and in stark contrast

Full transcript here
http://blog.blueindex.co.uk/2009/05/dont-bet-on-ladbrokes/

Taken profits here (like watching paint dry) @ 120.41 + 5.28.

Well the WMH/888 takeover didn't take place. LAD sp severe headache banging constantly against resistance. Preliminary results 26th Feb. Left a limit buy on spreads @ 124p tight stop if filled.

bought in @112 no exceptional profit,in results , divi up s/p to go past 130 if so.

Well timed exit Chris (post 86)
2517

Afraid so George. Could have to wait awhile before limit buy filled.

Getting closer to my limit buy. Thinking perhaps may spike in conjunction with WMH tomorrow if their results are received positively, not holding my breath. But who knows?

Could go either way tomorrow.

Ladbrokes announces 60 betting-shop closures - profits drop

midnight - All doom and gloom for LAD yet up 5.25% today, go figure as the yanks say :0)

Feb 26:
Panmure Gordon: Hold - TP: 135p
Numis; Reduce - TP: 100p
JP Morgan: Underweight - TP:110p

I'll take any spike that's going tomorrow :0)

I'm with PG, don't like the look of the other 2.
2517

Still waiting :0)

Feb 27:
Canaccord: Hold - TP: 115p
Barclays: Equal Weight - TP: 122p
Deutsche Bank; Hold - TP: 112p
JP Morgan: Undewrweight - TP: 110p

sold small profit @ 1 1 8

StockMarketWire.com
Bookmaker Ladbrokes reports improved operating metrics in the three months to the end of March. But it says results have favoured customers and profits are materially down.

Ladbrokes says group net revenues rose by 3.3% in the period but EBIT fell to £14.3m - down from £35.6m in the previous three months and down from £18.4m a year ago.

Chief executive Jim Mullen said: "In Q1 many of our customer metrics are encouraging but results have favoured customers and profits are materially down.

"These results demonstrate the challenges we continue to face. We need to change the way we run the business, build scale, primarily in Digital and respond faster to the customer and changes in the market place.

"I will complete my review of the wider business quickly and I will present some of the principal changes that I intend to make, in June, earlier than planned.

"Shareholders should expect me to focus on how we will build an effective competitive position, develop scale and resilience over the medium-term.

"I believe strongly in Ladbrokes. We have laid solid operational foundations but there is still a lot to be done. The decision to seek examinership in Ireland demonstrates the seriousness of our intent and the speed with which we will execute."

Exane BNP Paribas reiterates outperform on Ladbrokes, target raised from 120p to 125p

Still going against the trend only this time it's upwards.
2517

Statement regarding potential merger of Ladbrokes plc and Coral Group
In response to recent press speculation, Ladbrokes plc ("Ladbrokes") confirms that it is in discussions with the board of Gala Coral Group Limited ("Gala Coral") regarding a possible merger of Ladbrokes and Coral Retail, Eurobet Retail and Gala Coral's Online businesses ("Coral Group"), to create an enlarged business (the "Combined Entity") which would be listed on the official list of the UK Listing Authority (the "Official List") and traded on the main market of the London Stock Exchange.

Shareholders are advised that there can be no certainty that the discussions between Ladbrokes and Gala Coral will lead to any agreement concerning the possible merger or as to the timing or terms of any such agreement and there can be no assurance that, even if reached, any such agreement would be completed. Ladbrokes also notes that, in the event that such a transaction proceeds, it may undertake a non pre-emptive equity placing to strengthen the balance sheet of the Combined Entity.

In light of this development, the Business Review presentation scheduled for 30 June may be re-scheduled depending on how discussions progress.

A further announcement will be made as and when appropriate.

Jim Mullen, CEO Ladbrokes plc, said

"Since becoming CEO my focus has been on a more aggressive plan to build digital scale and grow our recreational customer base across all channels, which is key to creating a more sustainable and growing Ladbrokes. My plans are well advanced and I look forward to presenting them to shareholders.

A merger with Gala Coral could create a combined business with significant scale and has the potential to generate substantial cost synergies, creating value for both companies' shareholders.

The Board has not yet concluded whether a transaction is strategically attractive and can be delivered to shareholders on appropriate terms."

Excellent news and nice jump in the sp.
2517