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 Ladbrokes Will Begin Repurchasing its Own Shares
Leading European bookmaker Ladbrokes (LSE: LAD) has just said it intends to start repurchasing its own shares, according to a published report by David Stevenson of the Motley Fool UK
"Why? 'In order to move, over time, towards the stated target gearing range of 3.5 to 3.75 times historic EBITDA' [the gross profits earned by the company before taking account of interest, tax, depreciation and amortization], according to the bookie.
"Moving from 'City speak' into slightly plainer language, this means Ladbrokes will be swapping more of its funding from equity to debt.
"That's not automatically a bad thing, particularly if a company is paying high dividends and interest rates are low. Though if borrowing costs rise, it's less of a good idea."
"But more fundamentally, and as a cynic, I believe that firms often make announcements about share buy-back programmes as smoke screens, to deflect attention from other, less favourable issues.
"And in Ladbrokes' case, the overall business isn't really quickening up at the moment. Despite a strong jump in revenues from telephone betting "high rollers" and from in-shop gambling machines, first half pre-tax profits have fallen to £156m from £158.6m a year ago."
On Thursday, the bookmaker announced that first-half profit more than halved compared with the same period last year when the company benefited from the soccer World Cup.
Net income plunged to 131.3 million pounds (US$266.2; 欧元193.4 million) in the six months through June 30 compared with 517.5 million pounds in the same period a year earlier the company said in a statement. Revenue rose 19 percent to 600.9 million pounds (US$1.2 billion; 欧元884.9 million).
In addition, the company said Brian Wallace is replacing Rosemary Thorne as finance director.
"Italy represents the most progressed opportunity amongst our international development plans and our first acquired shops are now open," the company said. "We have submitted our application to operate in Madrid, Spain and we are advanced in our preparations to bid for Taiwan's new sports lottery."
Ladbrokes shares dropped 3.7 percent to 389.75 pence (US$8.02; 欧元5.62) on the London Stock Exchange. |
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发表于 2007-8-10 05:38