Hilton Group PLC, with its headquarters in Watford, Herts, England, published its trading statement last week for the four months ended Oct. 31, 2002. Hilton (including Ladbrokes) ranked in the Europe FT 500 (May 2002) at 242 (coming from 295 in 2001), with a market value of US$5,603.2, saw a 9 percent lower profit compared with the same period in 2001.
In 2001, gaming accounted for 63 percent of revenues, and hotels 37 percent. Gross profit for the four months was up approximately 15 percent compared to last year, Hilton reported. FOBT weekly turnover is currently in excess of £11 million, the company added.
Hilton Hotels Corporation, the owner of the Hilton name within the United States, and Ladbrokes Group PLC, whose wholly owned subsidiary, Hilton International, held the rights to the Hilton name elsewhere in the world, announced in August 1996 proposals to reunite the Hilton hotel brand after 32 years. The two groups announced the signing of the agreements that formalized the worldwide alliance between the two companies in July 1997.
Now the Hilton Group plc has two operating divisions:
- Hilton International, which owns the rights to the Hilton name outside the United States; and
- Ladbrokes Betting and Gaming (formerly Ladbrokes Group PLC), which is one of the world's largest commercial off-track betting and gaming organizations.
Hilton Group also owns the Vernons football pools business, which is one of the two major participants in this market and is the market leader in standing-entry football coupons.
According to Hilton's trading statement on the gaming and betting division, "All businesses continued to perform well and enjoyed strong turnover growth, which has continued into October 2002. In the core U.K. cash betting business gross profit for the four months was up approximately 15 percent compared to last year. Strong management of overhead costs ensured excellent conversion from gross to operating profit. Over 1,000 Fixed Odds Betting Terminals (FOBTs) have now been installed in the shops with a further 1,000 planned by the first quarter of 2003. FOBT weekly turnover is currently in excess of 17 million USD.
"Telephone betting turnover was strong during the period with operating profit growing despite lower margins. The eGaming business continues to grow overall in line with our expectations.
"Betting turnover remains buoyant and is expected to grow in all three distribution channels.
"Despite the current economic and political backdrop Hilton expects the final dividend to be declared at no less than last year's level (0.2 cents)."
Ladbrokes, the world's leading bookmaker, employs over 12,000 people in its international retail, telephone and e-gaming operations and is at the forefront of a fast-growth £7 billion U.K. industry.
Since launching its Internet service, www.ladbrokes.com, in February 2000, Ladbrokes has secured over 200,000 registrations. The site passed the million-pound-a-week turnover barrier within a year of its launch and is already achieving operating profit, well ahead of schedule.
Ladbrokes.com offers a wide range of betting and gaming opportunities, including an exclusive numbers game, "balls," the world's first "every-minute" numbers draw. It was also the first leading bookmaker to launch an integrated online casino, Ladbrokescasino.com. The company's most recent online offering is Ladbrokespoker.com, a multiplayer virtual poker room launched in May 2002. The poker site as has already dealt its millionth hand.
In 2000, Ladbrokes became the first company to offer betting via interactive TV. The company has established interactive betting services on ITV Digital, Telewest and NTL, all of which are experiencing rapid growth.