Ladbrokes Refinances Debt and Posts Profits
Ladbrokes, Britain’s second largest bookmaker, announced on Friday that it had reached a deal with bankers and financiers to refinance the company’s outstanding debts. Under the terms of the deal, Ladbrokes will be paying a 7.5% interest rate on a debt that’s now around £540 million.
Ladbroke’s Year of Deals
This week’s deal is the latest piece of positive news from the company, which has had its share of difficulties this year. In October Ladbrokes’ attempt to take take over Sportingbet fell apart over complications from Sportingbet’s Turkish operation.
Earlier this year, Ladbrokes took a shot at acquiring 888 in a deal that generated a tremendous amount of publicity. That deal fell apart when company officials and 888 founders were unable to agree on share prices.
String of Wins
But 2011 hasn’t been all bad for Ladbrokes. Before restructuring their debt, last summer company officials restructured their organizational chart to help them better compete in the topsy turvy gaming market. And other recent announcements from the company have helped boost investor confidence.
In October, Ladbrokes surprised some industry watchers by reporting a solid increase in third earnings. While online operations accounted for some of the increase, a surge in revenues from land-based gaming machines accounted for most of the new revenue.
Ladbrokes’ roller coaster ride in 2011 is not an unusual story these days. The worldwide economic slump and a patchwork of international gambling laws have made mergers and acquisition deals come and go at a breakneck speed. And given the challenges faced by countries in the Eurozone, this situation is not likely to change soon.
The best way for affiliates to ride out these changes is by keeping a abreast of gaming company news and adjusting their strategic plans accordingly.
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