Gala Coral unveils Q1 results

Highlights of the fourth quarter:

• Total Coral Group EBITDA of £62.4m was £7.9m or 14% ahead of last year with growth in all divisions
•  After adjusting for regulatory impacts EBITDA was 59% ahead of last year, with improved football results contributing significantly to the underlying gross profit improvement
•  Coral Retail EBITDA of £40.7m was £0.2m ahead of last year, and £9.6m or 31% ahead after adjusting for the impact of regulation, with OTC margins 1.5pp ahead
•  Eurobet Retail EBITDA of £5.1m was £2.9m or 132% ahead of last year, with strong sports stakes growth and sports margins 5.9pp ahead
•  Online EBITDA of £18.5m was £6.6m or 55% ahead of last year, and 194% ahead after adjusting for regulatory impacts. Online net revenue was 41% ahead, with coral.co.uk 69% ahead
•  Sale of Gala Retail to Caledonia Investments for a headline price of £241m completed on December 19, 2015

Carl Leaver, Gala Coral CEO, said: “The Group posted another strong quarter of growth with EBITDA £7.9m or 14% ahead of last year. After adjusting for incremental regulatory costs, underlying EBITDA was £23.1m or 59% ahead driven by continued momentum in all divisions and improved football results. Online growth was strong driven by CRM-led reductions in churn and high levels of customer acquisition at market leading costs-per-acquisition. Multichannel continues to play a key role in driving both customer acquisition and retention as customers embrace the unique features of our Connect offering. Coral Retail saw positive OTC stakes growth and a good machines performance. Strong growth in Eurobet Retail was helped by the relocation of 250 shops to more profitable locations. We continue to work constructively with the Competition and Markets Authority as it progresses through phase 2 of its review of the proposed merger with Ladbrokes PLC. Timescales are in-line with our expectations, with the next key milestone being the CMA’s announcement of its provisional findings, and if required, proposed remedies, in mid-to-late April. A final decision is due by June 24. In the meantime our teams remain firmly focused on the execution of our strategy. We are confident that we are very well placed for the year ahead.”

To see the full report click here.