Date: Wednesday 19 Mar 2014
LONDON (ShareCast) - Shares in British bookmakers Ladbrokes and William Hill tumbled after the government's new Budget included an increase to 25 per cent in duty on fixed-odds betting terminals (FOBTs).
Chancellor George Osborne said that he would lift the rate on Machine Games Duty on betting content from 20% to 25%, to take effect from 1 March 2015.
Ladbrokes has the greatest dependence on FOBTs, representing almost 40% of the company's earnings before interest and tax, compared with 26% for William Hill, according to calculations from analysts at Barclays.
William Hill put out a short statement on Wednesday afternoon to explain that had these conditions been applied in 2013 they would have cost the business an additional £16m, based on FOBT gross win that year.
The 33,000 FOBTs in the UK account for around £1.6bn of the industry's in store takings, according to research group Mintel.
Ladbrokes shares were down 12% to 139.9p and William Hill's 7% to 140p at 15:50 on Wednesday.
Elsewhere in the leisure sector, Rank rose 8.1% as the casino operator was boosted by news that bingo duty had been halved from 20% to 10%.
Pub landlords rejoiced as the Chancellor, given the Beer Drinker of the Year award last year for scrapping a planned 3p rise in beer duty, cut the beer duty by a further penny.
Punch Taverns was up 3% to 12.75p, JD Wetherspoon was up 0.8% to 848p and London Pride brewer Fuller Smith & Turner was up 1.5% to 945p, although Enterprise Inns fell 1.8% to 144.6p.
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Currency | UK Pounds |
Share Price | 84.60p |
Change Today | 0.20p |
% Change | 0.24 % |
52 Week High | 103.40 |
52 Week Low | 62.50 |
Volume | 20,515 |
Shares Issued | 468.43m |
Market Cap | £396.29m |
RiskGrade | 325 |
Value |
---|
Price Trend |
---|
Income |
---|
Growth |
---|
Strong Buy | 2 |
Buy | 2 |
Neutral | 0 |
Sell | 0 |
Strong Sell | 0 |
Total | 4 |
Latest | Previous | |
---|---|---|
Interim | Final | |
Ex-Div | 13-Feb-20 | 19-Sep-19 |
Paid | 13-Mar-20 | 29-Oct-19 |
Amount | 2.80p | 5.50p |
Time | Volume / Share Price |
08:11 | 4,688 @ 84.60p |
08:11 | 560 @ 84.80p |
08:11 | 5,000 @ 85.00p |
08:11 | 1 @ 89.20p |
08:10 | 7,676 @ 84.60p |
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