Investor Glossary

AAMS

Amministrazione autonoma dei monopoli di stato – the Italian regulatory authority.

ABB

Association of British Bookmakers.

Adjusted Cost per Acquisition

Total of all online and offline recruitment marketing spend (including promotions and bonuses netted from revenue), all affiliate expenses relating to deals where affiliates are paid a one-off fee for each sign-up and all bonus costs (except those relating to sign-ups from revenue share affiliates) divided by the aggregate number of real money signups from non-affiliate sources and the number of real money sign-ups through affiliates that are paid a one-off fee.

AMLD (amusement machine licence duty)

An annual duty payment relating to gaming machines. The rate of duty payable varies according to machine category.

Average Monthly Active Player Days

The sum of, for all Unique Active Players in the period, the number of days they have played during the period.

BAGS

Bookmakers Afternoon Greyhound Services Limited, a not-for-profit company set up by various bookmakers, including Ladbrokes.

Bet in Play

Betting-in-Play allows bettors the opportunity to bet on outcomes during a live event.

Category B2 gaming machine

Gaming machine with maximum stake of £100 and maximum prize of £500.

Category B3 gaming machine

Gaming machine with maximum stake of £1 and maximum prize of £500.

Company

Ladbrokes plc

Cost per Acquisition

Total of all online and offline marketing spend (including promotions and bonuses netted from revenue), all affiliate expenses relating to deals where affiliates are paid a one-off fee for each sign-up and all bonus costs (except those relating to sign-ups from revenue share affiliates) divided by the aggregate of the number of real money sign-ups from non-affiliate sources and the number of real money sign-ups through affiliates that are paid a one-off fee.

Current asset

An asset that will normally be turned into cash within a year.

Current liability

A liability that will normally be repaid within a year.

DCMS

Department of Culture, Media and Sport

Depreciation

The reduction in the book or market value of an asset, or the portion of an investment that can be deducted from taxable income.

Dividend

The payment by a company to its shareholders.

Dividend yield

The annual dividend per share divided by the price per share.

EBIT

Earnings before interest and tax.

EBITDA

Earnings before interest, tax, depreciation and amortisation.

EPS

Earnings per share. This is calculated by dividing the profit (or underlying earnings) by the weighted average number of shares in issue.

Exceptional items

The in/out flow of cash on a one-off basis.

Ex-dividend

The purchase of shares in which the buyer is not entitled to the forthcoming dividend.

FOBTs or Fixed Odds Betting Terminals

Computerised machines which allow players to bet on the outcome of various games and events with fixed odds, including roulette. Also referred to as B2 machines.

Gambling Act

The Gambling Act 2005 is the primary piece of legislation governing gambling regulations in Great Britain.

GamCare

A charitable organisation which provides counselling to those with gambling-related problems.

Gambling Commission

Set up under the Gambling Act 2005, the Gambling Commission regulates casinos, bingo, gaming machines and lotteries. It is also responsible for the regulation of betting and remote gambling, as well as helping to protect children and vulnerable people.

Gaming Machines

Betting shops can operate machines with B2 content (including old FOBT content) and B3 content (e.g. £500 payout jackpot games), as defined by the 2005 Gambling Act.

Gross profit tax (GPT)

Introduced in October 2001, this is a duty charged by the UK Government of 15% of a bookmaker's gross win.

Gross Win

Total customer stakes less customer winnings plus commission i.e. the amount of money left behind by the customer.

Horse racing levy

A levy attributable to bets taken on horse racing and payable to the Horserace Betting Levy Board, primarily for the purpose of augmenting the prize money available for winning horses and providing certain racecourse amenities.

LBO

Licensed betting office.

Market capitalisation

The number of shares in issue multiplied by the share price.

Net Revenue

Gross win less fair value adjustments (e.g. fair value of reward points, free bets and promotional bonuses), VAT and associate income.

OddsOn!

Ladbrokes’ Loyalty scheme which awards customers with a point for every amount staked Over The Counter. These points are then accumulated and can be redeemed for free bets, odds enhancements or win bonuses.

Operating profit

Profit before finance costs and tax.

Operating margin

Operating profit expressed as a percentage of net revenue.

OTC

Over-the-counter.

Price / earnings (P/E) ratio

The share price divided by earnings per share.

RGA

Remote Gambling Association: represents remote gambling companies and provides the industry with a single voice on all issues of importance to regulators, legislators and key decision makers around the world.

Real Money Sign-up

A new player who has registered and deposited funds into an account with the Company. To address the issues posed by shared wallets. Customers are categorised between lines of business according to where they first register on the gaming site.

Responsibility in Gambling Trust (RiGT)

A charity that funds treatment, education and research related to problem gambling.

Retained earnings

Earnings not paid out as dividends.

SIS (Satellite Information Services)

Ladbrokes owns 23.4% of SIS, a leading supplier of television programming and sports data to licensed betting offices in the UK, Ireland, Isle of Man and Channel Islands.

Special dividend

A one-time distribution of funds to shareholders.

Sportsbook

Bets accepted on sporting and other events.

Unique Active Player

A player who has contributed to rake and/or placed a wager in the period.

Yield per Unique Active Player

Net Gaming Revenue divided by the number of Unique Active Players in the period.

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