Ladbrokes Coral "doubled its interim dividend to shareholders in a sign of its confidence in the opportunities created by the merger," according to Dominic Walsh of the LONDON TIMES. The bookmaker, created last year through the merger of Ladbrokes and Coral, said that it was "increasing the payout" from 1p per share to 2p "despite continuing uncertainty" over the outcome of the government’s review into gaming machines. Ladbrokes Coral CEO Jim Mullen said that the half-year results were "at least in line with expectations, probably a bit better" and that the company was "entering the second half with confidence." He said, "The increased dividend is very important because it signals our confidence in our ability to grow the business." Mullen said that the integration of the two businesses into one company was now "substantially complete," with synergies expected to be twice the original estimate, at £150M ($194M). It is now starting to "kickstart the flow of new betting products, especially in football." On a pro-forma basis, the group reported a 1% increase in revenues to £1.2B ($1.5B) for the six months to the end of June. Underlying earnings were "flat" at £211M ($273M) but operating profits increased by 7% to £158.3M ($205M). Digital sportsbook revenues "jumped" by 25%, "helped by new product launches in Australia," but retail revenues in the U.K. fell by 6%, "thanks partly to the decision to push up margins in the Ladbrokes shop estate" (LONDON TIMES, 8/31). In London, Bradley Gerrard reported Mullen said that the company also "agreed to pay a voluntary levy to the greyhound racing industry" equivalent to 0.6% of the amount staked on the sport via Ladbrokes Coral. This is expected to be equivalent to £750,000 ($969,525), which will "be on top of other payments the company makes to the industry such as through media rights." Besides greyhound racing, horse racing is a "major draw for customers to Ladbrokes’ shops." These "suffered a drop in like-for-like revenues as a spat between Ladbrokes Coral and The Racing Partnership meant the bookmaker was unable to show some races on TV for several months, which hit sales" (TELEGRAPH, 8/31).
