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Ladbrokes Hikes Dividend Payout

David Kuo, Fool U.K.
August 2, 2012

LONDON -- Ladbrokes (LSE: LAD.L  ) reported a 49% rise in half-year profits to 107 million pounds, which puts the betting-shop chain on course for annual profits of 170 million pounds. Despite problems at its digital business, Ladbrokes managed to post an 8% rise in group net revenues to 529 million pounds. It has also hiked its dividend by 10% to 4.3 pence per share.

Ladbrokes said: "Strong growth in operating profit in U.K. retail and an improved performance in our European Retail and Telephone businesses was pleasing and more than outweighed a decline in Digital profits, which was greater than expected due largely to a weak sportsbook margin in Q2 and exacerbated by delays in technology."

The disappointing performance in Digital has cost Richard Ames his job as head of product. Ames was relieved of his duties just two days before the company revealed a halving of operating profits at its Digital division.

Ladbrokes added: "We remain committed to our Digital strategy of building a more competitive offer thr