SBC News Gala Coral maintains growth despite growing headwinds & tough comparative period

Gala Coral maintains growth despite growing headwinds & tough comparative period

CarleaverReporting on its year to date performance (period ending 30 September), Gala Coral has recorded Group EBITDA earnings of £205 million, just 1% ahead of 2014’s £202 million.

Gala Coral governance stated that corporate performance had remained strong despite encountering significant regulatory headwinds and a tough comparative period which featured no World Cup to boost company performance.

The operator maintained its strong digital performance, which recorded EBITDA earnings of £56 million up 14% on 2014’s £49.5 million.

The division’s growth had been driven by an increase in player activity which had seen Gala Coral gain ‘+970,000 new first time depositors’. Gala Coral online division would record top line growth on all key performance metrics.

Countering strong headwinds, Coral Retail would maintain its revenue performance in-line with 2014 £675 million, however the division would note a slight decrease in its EBITDA performance, as earnings were reported at £141 million from 2014’s £143 million.

During the period the operator further announced the sale of bingo division ‘Gala Retail’ to private equity firm Caledonia Investments for £241 million.

The period would see the operators exceptional costs rise to £194 million from £128 million in the previous 12 months in part to costs undertaken by the proposed merger with Ladbrokes.

Carl Leaver, Group CEO, commented on corporate performance

 “The Group’s financial performance in the full year was strong, with EBITDA ahead by £2.7m or 1% despite significant regulatory headwinds, and last year’s World Cup. After adjusting for these items underlying EBITDA was 30% ahead.

Growth in the Online business continued at market leading rates with net revenue 36% ahead and underlying EBITDA double the prior year.

Our unique multi-channel capability in both the UK and Italy continues to be a key driver of value: Connect customers are contributing over 40% of Coral.co.uk gross win, while in Italy, multichannel acquisition helped propel Eurobet.it to the number 2 position in the online sports market.

During the year we announced the proposed merger between the Coral Group and Ladbrokes PLC. The deal will bring together two complementary businesses and create significant value. Having been approved by Ladbrokes shareholders on the 24th November, the proposed merger is now subject to the Competition and Markets Authority’s approval.

Post year-end, we were pleased to announce the sale of Gala Retail to Caledonia Investments. The deal is expected to complete before the end of the calendar year and following on from the winding up of the Propco debt structure earlier in the year, represents the final important step in the restructuring of the Group ahead of the proposed merger.

Together with the rest of the industry, we have continued to build upon a proactive and constructive approach to self-regulation in connection with responsible gambling. We have also continued to work constructively with politicians, regulators and other stakeholders on these issues.”

Gala Coral Performance Overview

coraldata

Check Also

SBC News Entain concludes messy 2023 on £879m loss as UK/Euro headwinds continue 

Entain concludes messy 2023 on £879m loss as UK/Euro headwinds continue 

Entain Plc has closed its full-year 2023 accounts declaring corporate losses (after tax) totalling £879m …

SBC News Ladbrokes Stacey Carnell wins Betting Shop Manager of the Year award

Ladbrokes Stacey Carnell wins Betting Shop Manager of the Year award

Stacey Carnell was last night crowned ‘Betting Shop Manager of the Year’ at the Racing …

SBC News Entain triggers streamline as growth pains compound in Q3   

Entain triggers streamline as growth pains compound in Q3   

Entain Plc has outlined key initiatives to accelerate its operational strategy and improve the quality …