UK bookmaker Ladbrokes said four-month operating profit rose 3 per cent, as it cut costs by moving its internet sports-gambling operations to the low-tax jurisdiction of Gibraltar.
The expense reductions helped it offset a decline at its UK betting shops, as net revenue for the four months ended April 30th dropped 6 per cent, the company said in a statement.
The company said net debt had fallen by £179 million since year-end to £515 million as it settled a tax dispute.
Ladbrokes is trying to attract more Internet wagers to make up for decreasing sales at its betting shops. The bookmaker relocated its sports-gambling unit to Gibraltar last year, and finance director Brian Wallace said on a conference call the company expects to save about £8 million annually.
"Group profitability year to date has been broadly in line with expectations," chief executive Richard Glynn, who started on the job last month, said in the statement. "Debt levels have already fallen significantly this year reflecting the continued cash generation of the business and the benefit of the tax settlement."
Ladbrokes lost 3.8 pence, or 2.5 per cent, to 147 pence at 8.04am in London. The shares have gained 7 per cent so far this year, giving it a market value of £1.3 billion.
Bloomberg