Hilton Profits Down Due To Ladbrokes

Published: Friday, May 27, 2005 Online-Casinos.com

HILTON PROFITS DOWN DUE TO TOUGH RACING BREAKS AT LADBROKES

But online, the revenues continue to rise

Hotel and bookie owner Hilton Group plc warned this week that profits since the start of the year were lower than last due to less favourable sporting results at subsidiary Ladbrokes.

In a trading statement, Hilton said group profits for the first four months of 2005 were 4 pct down on last year thanks to 'tough trading comparatives' at Ladbrokes, principally on its betting shop racing activities.

By contrast, Ladbrokes' online operations reported a 23 percent rise in gross win, said Hilton.

Chief executive David Michels said he was not concerned that rival William Hill group's purchase of the Stanley Leisure chain of betting shops had seen it leapfrog Ladbrokes as the UK's biggest chain.

Stanley's 624 betting offices have swollen the William Hill estate to some 2,237 outlets, compared to Ladbrokes' chain of around 1,900 bookmakers.

"I don't think there's a single customer who will notice that (William Hill has more outlets)," said Michels. "I still believe we are, and will remain, number one by profit. We are certainly still number one by profit per shop," he added.