(Adds details, analyst comment, share movement)
Oct 18 British bookmaker Ladbrokes
reported a 12.1 percent rise in third-quarter net revenue on
Tuesday, helped by a bookmaker-friendly and busy summer of
* The company, which agreed an all-share merger with Gala
Coral to create a 2.3 billion pound ($3.4 billion) betting
group, said net revenue for UK Retail rose 1.9 percent in the
quarter ended Sept. 30, while European Retail net revenue rose
* Ladbrokes' digital business revenue jumped 48.2 percent in
* The company said its performance in the quarter was
"supportive" of its full-year expectations.
* Ladbrokes and Gala on Monday agreed to sell 359 shops for
55.5 million pounds to rivals, subject to approval from
Britain's competition watchdog, in a deal that will reduce their
footprint and pave the way for competition authorities to allow
their merger to proceed.
* Ladbrokes said on Tuesday that after getting the
Competition and Market Authority's nod for the sale, it would
look for the regulator's consent to complete the merger, subject
to the sale of one remaining shop.
* Ladbrokes also said it expected the British government to
begin its triennial review into gaming machines in the near
future, adding that it would support the government.
* "Once the merger with Coral completes, we would view the
largest retail bookmaker in the UK as very exposed to structural
and regulatory challenges," Liberum said in a note for clients.
* The broker said other regulatory challenges in the short
term included Britain's proposal to extend the horse-racing levy
online at a rate of 10 percent.
* The overall impact on the enlarged Ladbrokes-Coral is
likely to be in "mid-single digit millions", Liberum analysts
* Liberum has a "sell" rating on the stock.
* Ladbrokes' shares were up 1.7 percent at 140.2 pence at
0708 GMT on the London Stock Exchange.
(Reporting by Noor Zainab Hussain in Bengaluru; Editing by