GALA CORAL DELIVERS ROBUST HY1 RESULTS
19th May, 2015 at 11:59:49
Momentum continues in trading update
Group has reported on its first half results to April 11, 2015, delivering robust growth across most internet and retail business sectors with the exception of Eurobet Retail.
Key performance highlights include:
* Total Group net revenue of £ 684.8 million was £ 34.7 million or 5% ahead of last year.
* Total Group EBITDA of £ 135.4 million, £ 12.2 million or 10% ahead of last year.
* After adjusting for regulatory impacts and exceptionally poor football margins in Italy, EBITDA was
* £ 22.8 million or 19% ahead.
Retail EBITDA is 1% ahead of last year.
* 567,000 first time depositors, up 28% on last year, with Coral Connect sign-ups now over 210,000
* Eurobet Retail sports stakes 21% ahead, offset by extremely weak sports margins.
* Gala Retail EBITDA 64% ahead, driven by a 3% increase in spend-per-head, lower bingo duty and rent reductions on the properties previously owned by PropCo.
Online performance highlights comprise:
* Online net revenue amounted to £ 33.8 million, 38% ahead of last year.
* Growth in Coral.co.uk driven by a combination of new multichannel actives and an improved and extended product offering including two Playtech casinos
and addition of WMS games.
* Galabingo.com delivered net revenue 30% ahead of last year, helped by increased mobile play and improved CRM reducing churn rates.
* In Italy, Gala Coral's multichannel offering has been critical in helping grow Eurobet.it to the number 2 position in the online market.
* Online EBITDA of £ 23.9 million was £ 2.5 million or 12% ahead of last year but 94% ahead after adjusting FY14 for the impact of Point of Consumption tax (£ 7.5 million) and FY15 for the impact of poor Italian football margins (£ 3.1 million).
* Net revenue increased by 66% and actives by 44% with high levels of acquisition across all channels.
* At the end of HY1 mobile stakes represented 71% of Coral.co.uk sports stakes (growing 141 percent) and 63% of gaming stakes (growing 107 percent).
* Sport actives were 48% ahead of last year and sports stakes were 91% ahead.
* Sport gross win margin was 1.3pp behind last year at 5.4% primarily due to weaker football margins and the impact of enhanced pricing offers, resulting in sports net revenue £ 5.7 million or 55% ahead at £ 16.1 million
* Gaming actives were 42% ahead and gaming stakes were 68% ahead.
* During the period 106 new games were launched, of which 8 were exclusive, helping drive an increase in gaming net revenue of £ 16.3 million or 72% to £ 38.9 million.
* Net revenue of £ 40.9 million was £ 9.4 million or 30% ahead of last year.
* Increase in mobile stakes of 114 percent, with mobile now accounting for 49% of Galabingo.com stakesGala Casino
* Galacasino.com actives were marginally ahead of last year; however stakes were 14% behind due to a reduced level of VIP activity.
* Gross win margin was 0.3pp ahead of last year leaving net revenue £ 0.6 million or 9% ahead at £ 7.2 million.
* Eurobet.it's current market share of 10% equates to approximately 14% of the market (excluding Bet365
), representing growth of 4pp since the start of the financial year.
* Sports stakes were 59% ahead of last year. However adverse football results helped drive gross win margin 4.1pp behind last year at 10.1 percent, and net revenue of only £ 0.1 million or 1% ahead at £ 8.4 million.
* After adjusting for the poor football margins, sports net revenue was £ 4.7 million or 58% ahead.
* Gaming stakes were 5% behind due to a continuing decline in poker stakes.
* Gaming net revenues of £ 11.3 million, £ 1.3 million or 13% ahead.
Carl Leaver, Group chief executive officer, commenting on the Group's online results said:
"These are pleasing metrics, and we are confident that we can maintain this momentum as we continue to drive operational excellence."
"We believe that the combined Coral and Gala websites are the fastest growing in the UK online gambling market, adding more net revenue than any of our listed peers."
In a simultaneous trading update to May 17, 2015, Gala Coral was upbeat saying the positive momentum continues.
Related News Tags: Playtech, Wms, Italy, Bet365, Coral, Gala