Leading UK gambling operator Gala Coral Group today posted trading update on its divisions’ overall performance during the twelve weeks ended September 25, 2016, or the fourth quarter of the company’s fiscal year. Group revenue was up 8.9% as compared to what was generated during the same period of the previous year. On a year-to-date basis, net revenue was up 11.3% from the figure registered for the prior-year period.
Improved OTC gross win margin and growth in gaming machines’ proceeds drove Coral Retail to net revenue growth of 0.3% for the reported twelve weeks.
Eurobet Retail, the gambling group’s Italy-facing division, was one of the main contributors to the overall revenue improvement reported. Revenue from Coral’s Italian operations was up 31.2% year-on-year, driven by a rise in sports stakes.
Gala Coral’s online business also showed excellent performance during the twelve weeks ended September 25. The division’s net revenue was up 23.7% from the same period of the previous year. The growth was attributed to solid sports stakes rise.
Of the latest trading update reported, Gala Coral CEO Carl Leaver said that the growth registered came as an indication for the company’s continued momentum. The executive hailed their online business for its accelerated growth rates from the second quarter of the fiscal year. According to Mr. Leaver, Coral is now well-positioned to complete its £2.3-billion merger with fellow operator Ladbrokes.
The multi-billion-pound deal is subject to a final approval from the UK Competition and Markets Authority and is to be closed anytime now. In order to be allowed to complete the procedure, both Ladbrokes and Coral were required to dispose of a number of betting shops in certain regions in the UK and Ireland.
The competition regulator had previously voiced concerns that a consolidation of two companies with such a big high street presence would harm competition in certain areas. To please the Competition and Markets Authority, Ladbrokes and Coral disposed of 359 betting shops, selling them to rivals Betfred and Stan James. The latter two operators will acquire the said facilities for £55.5 million. Ladbrokes and Coral said that they would split the money in a manner that corresponded to the profitability of the stores and would use it to repay debt.
