Gala Coral has bucked a trend by announcing good trading figures for the group’s third quarter period, ending 4 July. Net Revenue of £305.0m was 6% ahead of last year, and EBITDA of £65.7m was up 8%, boosted by continued growth in Online and Gala Retail.
The figures are despite the £7.2m extra costs of gaming machines caused by an increased in Machine Games Duty, an extra £6.2m tax bill online with the introduction of the point of consumption legislation and tough World Cup comparatives.
CEO Carl Leaver commented: “The Group posted another strong performance during the quarter with EBITDA of £65.7m which was £5.1m or 8% ahead of last year, despite incurring an additional net £12.9m of tax and regulatory costs. Adjusting FY14 for these tax and regulatory changes and the World Cup, underlying EBITDA was £22.6m or 52% ahead. This continued positive momentum is a direct result of our focus on product innovation and a disciplined approach to marketing, together with the significant capital investment made across the business over the last few years.
“Underlying EBITDA growth in Online (+202%) was particularly encouraging, driven by our strategy of providing an integrated, entertaining and seamless multi-channel experience for our customers. Coral Connect customers now account for approximately 40% of Coral.co.uk gross win, with their online spend being over twice the level of non-Connect customers. Mobile has also been a key driver of our online performance. During the quarter, Coral.co.uk mobile stakes were 82% ahead of last year and Galabingo.com mobile stakes were 71% ahead.”