Betting firm Ladbrokes has issued a profits warning for its Digital division, blaming increased technology investment, marketing spend and a poor sportsbook margin in the second quarter of 2012.
The firm had previously told the market that new investments in the digital offering would hit profits but, in a speech to analysts and investors today, the Chief Executive, Richard Glynn, will reveal that the sportsbook has achieved a "poor margin" in the three months to the end of June.
The net effect will be that Digital revenues in the first six months of this year will be 50% down on the prior year. Ladbrokes says, however, that other businesses have done well, particularly Retail, and that, overall, it should meet expectations for the first half of the year.
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