EU vote "poses new questions", says Ladbrokes chief

Ladbrokes chief executive Jim Mullen (pictured) says this morning’s Brexit result “poses new questions” for the industry but he will take his time to fully evaluate the impact it could have on his business.

Following the UK public’s decision to leave the European Union, Ladbrokes’ share price fell 14% from last night’s close of 129.50p to 111.20p before rallying slightly to 117.90p at the time of writing.

Mullen said the firm would not be rushed into a “knee-jerk” reaction to the vote, with the firm keen to build on momentum the business had built over the past couple of quarters.

“The referendum result undoubtedly poses new questions and we must take time to understand and work through the full implications for our business and the betting industry before making knee-jerk reactions,” Mullen said.

“We will take up the challenge of ensuring we build on the momentum we have in our business which all our colleagues are fully focused on delivering,” he added.

Proposed merger partner Gala Coral declined to comment.

Earlier today, Cenkos Securities analysts Simon French said Brexit should have a minimal short-term impact on UK operators, although operating in Gibraltar may prove problematic in the long-term.

Meanwhile, in an attempt to quash Brexit fears, William Hill said 85% of its revenues were derived from the UK and that there would be no impact during the likely two-year exit negotiation period.

“Within the Online business, only a small proportion of the non-core revenues rely on the EU federal gambling position that depends on the UK being an EU member,” the firm told analysts.

The Brexit vote saw London-listed firms’ share prices suffer when the market opened this morning, although prices have since rallied.