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4 SEPTEMBER 2013
Ladbrokes plc acquires Australian sports betting operator
New Ladbrokes.com.au service launches today
Overview
Ladbrokes plc ("Ladbrokes") one of the world's leading betting and gaming companies has agreed to acquire Gaming Investments Pty Ltd ("GIPL"), a fast growing online sports betting business in Australia. GIPL's business includes Bookmaker.com.au Pty Ltd ("BPL"), operator of the online bookmaker Bookmaker.com.au and Panda Gaming Pty Ltd ("PGPL"), operator of an extensive racing and sports focused affiliate network in Australia.
The acquisition, expected to complete this week, will see Ladbrokes acquire GIPL under its newly formed Australian arm 'Ladbrokes Australia' for an initial consideration of A$22.5 million, approximately GBP13 million plus an earnout payable at the end of 3 years which is based on the EBITDA for Ladbrokes Australia for the year ending 30 June 2016.
Key highlights
-- Extends global reach, providing a low cost entry into the regulated and growing Australian sports betting market
-- Launched in February 2012, Bookmaker.com.au achieved circa A$400 million in amounts staked for the year to 30 June 2013. Led by Founder and CEO Dean Shannon, the business has a strong senior management team and skilled technology operation with extensive experience in the sector. As shareholders, the senior management team are highly incentivised to deliver future growth
-- Includes ownership of an independently developed betting software platform created specifically for the Australian market with innovative product features, integrated with a tailored affiliate platform, a mobile platform and a number of mobile apps
-- The acquired assets include an extensive network of racing and sports betting affiliate sites in Australia which has helped drive efficient cost per acquisition
-- A new website - Ladbrokes.com.au - which launches today, will be further developed utilising Ladbrokes extensive range of sports betting markets
-- Ladbrokes Australia is expected to make a small profit in the year ending 31 December 2014(1)
Commenting on the acquisition, Richard Glynn, Ladbrokes' Chief Executive Officer, said:
"The acquisition of this fast growing business represents an excellent opportunity for Ladbrokes to
establish a strong presence in Australia, in line with our strategy to extend geographic reach to key regulated markets. At launch Ladbrokes Australia will have a highly experienced management team who are strongly incentivised to achieve further customer and revenue growth over the coming years."
Management and operational structure
Ladbrokes Australia will be overseen by Damian Cope, Ladbrokes International and Group Strategy Director, who reports to Chief Executive Richard Glynn. GIPL's operations will continue to be based in Brisbane under the leadership of Founder and CEO Dean Shannon, a highly experienced online gaming entrepreneur. The senior management team will be retained and as shareholders are strongly incentivised to continue to drive growth in the business. Ladbrokes will be the primary brand for the business with existing brands continuing where appropriate. Positioning itself as a fun and modern betting brand, an active marketing campaign will be launched shortly focusing on the Spring Racing Carnival which encompasses a 65-day racing programme throughout the state of Victoria, culminating in the 2013 Melbourne Cup.
Transaction structure
Ladbrokes has agreed to acquire 100% of GIPL, which includes its bookmaking business BPL and its affiliate network PGPL, for an initial consideration of A$22.5 million (circa GBP13 million) payable in cash. In addition, there is an earn out payable in cash at the end of 3 years which is based on Ladbrokes Australia's EBITDA for the 12 month period 1 July 2015 to 30 June 2016. GIPL's EBITDA for the 12 months to 30 June 2013 showed a small loss. Ladbrokes is likely to incur a small exceptional charge during the current financial year in relation to the transaction.
Footnotes
(1) Before accounting for amortisation and any possible exceptional items
About Ladbrokes
The name Ladbrokes is synonymous with betting and gaming: the hallmark of a premier brand. The Company, the origins of which date back to 1886, employs over 13,000 people in Britain and over 15,000 in total. It is one of the world's leading betting and gaming enterprises. Ladbrokes is a market leader in retail bookmaking in the UK, Ireland, Belgium and Spain where it operates a combined total of more than 2,800 betting shops. In addition to its extensive retail presence Ladbrokes offers thousands of betting markets on a daily basis via the Internet, mobile and telephone. Ladbrokes.com, the Company's online betting and gaming facility, attracts circa one million active clients. Betting is offered via 13 tailored sites in nine different languages; supporting 17 currencies. The site incorporates the highest levels of security, which underwrite an integrated array of sports betting and gaming services available 24 hours a day, 365 days of the year. Ladbrokes is focused on building its digital capabilities through a product and marketing agreement with Playtech to realise its vision of becoming a fully e-enabled international betting and gaming business.
About Gaming Investments Pty Ltd ("GIPL")
GIPL is the holding company that owns BPL, which operates the online sports betting operation, Bookmaker.com.au and PGPL, one of the most extensive racing and sports focused affiliate networks in Australia. GIPL seeks to differentiate itself in the market through product leadership and customer focused innovation as well as bespoke and powerful back-end customer segmentation and profiling tools. These tools automate key aspects of customer risk management, driving efficiencies, margin and an ability to manage risk and growth. Some popular product features available on Ladbrokes.com.au include "Favourite vs. the field", "Pick your own odds" and "Quickbet".
GIPL is headed by Founder and CEO Dean Shannon who has extensive experience in the horseracing industry and has been successfully running online gambling related businesses since 2002.
Drawing its revenues almost entirely from Australia, BPL has shown substantial growth over the last 18 months. Only commencing operations in February 2012, the business has already generated amounts staked of approximately A$400 million for the year ended 30 June 2013.
Formed in 2009 PGPL has an extensive network of approximately 3,000 domains that are focused exclusively on racing, attracting approximately 200,000 monthly unique visitors. During the Spring Racing Carnival the network attracts around 2,000,000 unique visitors.
For further enquiries contact:
Ciaran O'Brien Corporate Affairs Director +44 (0) 7976 180 173
Matthew Sharff Head of Investor Relations +44 (0) 7854 184 808
This information is provided by RNS
The company news service from the London Stock Exchange |
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发表于 2013-9-11 01:07
