Friday 23 August 2019

Ladbrokes Coral secures rising revenues as digital business races ahead

The FTSE 250 firm said group net revenue had grown by 3% for the four months to October 29.


By Ben Woods, Press Association Chief City Correspondent

Revenues at Ladbrokes Coral have bounced back as strong growth from the digital business offset a drop in takings at the betting giant’s retail stores.

The FTSE 250 firm said group net revenue had grown 3% for the four months to October 29, with the digital arm clocking a 12% rise thanks to an 18% jump from online gaming firm Sportsbook.

It proved a brighter performance compared to the second quarter and the half year when revenues fell 2% and rose 1% respectively.

While the digital business recorded a double-digit jump over the period, revenues at the retail stores fell by 1% as like-for-like revenue from betting machines came in flat.

Shares were down more than 1% in morning trading, as the firm said its performance was in line with its annual targets.

Chief executive Jim Mullen said: “Our digital performance is strong and the Ladbrokes brand in Australia and the Eurobet brand in Italy continue to post very strong revenue growth.

“In the UK, the Coral and Gala brands also posted very pleasing growth, and we continue to transition our approach to customer acquisition and retention in to focus on improved profit conversion.

“In UK Retail, performance improved in line with our expectations primarily driven by the return of all horse-racing content to our shops.”

Ladbrokes Coral – created from the £2.3 billion merger of Ladbrokes and Gala Coral – said European retail revenues rose 17% as win margins across Italy returned to “normal levels”.

It said revenues at had grown by 13% amid a competitive UK market, while fell by 9%.

The update comes after the firm agreed to a £2.3 million penalty package from the Gambling Commission last week for failings which saw two high-spending customers gamble away around £1.3 million of stolen money.

The company was sanctioned after an investigation into sub-brand Gala Interactive found “significant flaws” in the way it deals with punters displaying problem gambling behaviour.

PA Media

Today's news headlines, directly to your inbox every morning.

Editors Choice

Also in World News