Major gambling operator Gala Coral Group announced today its financial results for the year ended September 26, 2015. Net revenue increased 6.4% year-on-year to reach £1 billion compared to the amount of £945.3 million posted for the previous financial year.
Coral Group EBITDA totaled £205.3 million during the period in review, up 1% year-on-year. After adjusting costs related to the newly introduced Point of Consumption tax and the increased Machine Games Duty as well as the impact of the 2014 FIFA World Cup, a 30% increase in underlying EBITDA was reported. Overall Group EBITDA amounted to £254.1 million, down 3.7% year-on-year.
Gross profit increased 2.1% during the reported period to reach £699.5 million compared to the amount of £685.4 million posted for the previous fiscal year.
Coral’s Retail operations generated net revenue of £675.9 million in the year ended September 25. Gross profit amounted to £503.9 million, down 10.8% year-on-year. EBITDA decreased 1.8% year-on-year to £141.2 million.
The operator’s Eurobet Retail division posted net revenue of £77.3 million, down 6.2% as compared to the results from the previous fiscal year. Gross profit totaled £24.9 million, down 3.8%. EBITDA decreased 5.4% year-on-year and the amount of £13.4 million was posted.
Online operations registered a strong growth over the past fiscal year. Net revenue from that particular division amounted to £247.8 million, up the impressive 65.2% as compared to the figures posted for the fiscal year ended September 26, 2014. Gross profit from Internet operations was up 28% to reach £166.9 million. EBITDA increased 6.7% to £56.2 million.
Coral Telebet generated net revenue of £4.4 million over the twelve months ended September 26, 2015, up 1.1% year-on-year. Gross profit from the division amounted to £3.8 million, up 0.7%. EBITDA was up 1.6% to £1.1 million.
Commenting on the Group’s full-year performance, CEO Carl Leaver said that it posted excellent results, despite the regulatory challenges, including the Point of Consumption tax and the Machine Games Duty increase, and last year’s FIFA World Cup.
During the financial year ended September 26, 2015, Coral Group announced a proposed merger with rival gambling operator Ladbrokes PLC for the creation of what would be UK’s largest betting shop chain. After being approved by Ladbrokes shareholders last week, Mr. Leaver noted that the deal is now subject to regulatory approval.
Post year-end, Coral Group announced that it would sell its Gala Retail division to Caledonia Investments. The deal is likely to be completed before the end of the calendar year.
