4 September 2013 – acquisition
The company has announced that it has reached agreement to acquire Gaming Investments Pty Ltd, an online sports betting business in Australia. This includes Bookmaker.com.au Pty Ltd, operator of the online bookmaker Bookmaker.com.au, and Panda Gaming Pty Ltd, operator of an extensive racing and sports focused affiliate network in Australia. The acquisition is expected to complete this week. It will see Ladbrokes acquire Gaming Investments Pty Ltd under its newly formed Australian arm, Ladbrokes Australia, for an initial consideration of A$22.5m (£13m) plus an earnout payable at the end of 3 years, which is based on the EBITDA for Ladbrokes Australia for the year ending 30 June 2016.
The Australian market is potentially very interesting and although Ladbrokes Australia is only expected to make a modest profit in the year to 31 December 2014 there is scope for the market to become meaningful over the longer term. The share price has done very little since our original tip and we feel that the shares continue to offer value, retaining our BUY recommendation.