Ladbrokes shares crash & 89 shops set to close
Upcoming changes in UK gambling regulation caused Ladbrokes stock shares to slide steeply this week, wiping out massive profits that the bookmaker accumulated in the third quarter of 2014.
Ladbrokes CEO Richard Glynn, who has recently undergone scathing criticism for the company’s online performance, said that Ladbrokes is now “on track”, but that the year ahead in 2015 would be a “tough” one.
Glynn predicted a “decline in profitability for the business” as new regulations come into effect that will raise UK gambling duty to 25 percent in March of 2015.
In addition to trailing behind online gambling competitors like William Hill and undergoing a large drop in share prices, the negative pressure has also caused Ladbrokes to announce that it will close an additional 40 shops. This brings the total number of closed Ladbrokes shops to 89.
Regarding the shop closures Ladbrokes stated that “Further shop closures in 2015 remain inevitable.”