|Recent columns in the UK press are recommending investors to start buying into the flourishing UK gambling industry. A sign of its recent success, financial analysts are predicting that smart investment money should be placed in gambling operators, particular operators of online gambling activity.|
Analysts have used the Hilton group as a prime example. Although the company and brand is largely known for its hotel chain, as owners of the UK based betting operation Ladbroke’s, the company has experienced a great boost in its revenues and profits thanks to the success of Ladbroke’s. In fact Ladbroke’s has grown and profited to such a degree that is now responsible for a larger proportion of the company’s profits than the chain of hotels.
The increased success of Ladbroke’s is largely due to its online ventures, which in line with the online gambling industry as a whole, has grown rapidly, expanded its range of offerings, and reaped great reward for the company. Hilton shares are now standing at 268.5p- a figure regarded as good value by economists.
Irish bookmaker Paddy Power is also used as a great example of prospering operators. Annual profits are now at 6 million Euros, compared to last year’s first half 1 million Euros loss. The company runs betting shops, as well as telephone and online betting branches, with all three aspects of the business performing well. This week they are listing 179,000 ordinary shares, issued under the Paddy Power Share Save Scheme-a scheme formed to aid the company’s progress into the larger UK betting market. Shares are currently set at 653.3p.
Taking into account the recent government decision to deregulate the UK gambling industry, and the current boom in online betting, analysts are now considering investment into gambling operators a strong choice for investors. It would seem particularly, although research should be done, that those companies boasting an online element to their business present particularly strong choices for people looking to buy into the share market.