CORAL POSTS STRONG 2015 RESULTS
03rd March, 2016 at 10:35:27
Solid underlying EBITDA growth with continued momentum in all divisions
The land and online gambling group Coral
- set to merge with Ladbrokes
this year - has posted a strong set of results for the sixteen week period to 16 January 20916, highlighting:
* Total Coral Group EBITDA of £62.4 million - up 14% on the same period last year;
* Growth in all divisions;
* After adjusting for regulatory impacts EBITDA up year on year by 59 percent, thanks mainly to better football results;
* Online EBITDA of £18.5 million up 55% year-on-year and 194% ahead after adjusting for regulatory impacts.
* Online net revenue was 41% ahead, with Coral.co.uk 69% ahead;
* Coral Retail EBITDA of £40.7 million, up £ 200,000 on last year, and £9.6 million or 31% ahead after adjusting for the impact of regulation, with OTC margins 1.5pp ahead;
* Eurobet Retail EBITDA of £5.1 million up 132% year on year with strong sports stakes growth and sports margins 5.9pp ahead;
* Sale of Gala
Retail to Caledonia Investments for a headline price of £241 million completed on 19th December 2015.
Carl Leaver, Group CEO, commented:
"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 24th June. 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."
Related News Tags: Coral, Gala, Ladbrokes