UK gambling operator Ladbrokes Coral Group today posted preliminary operating profit information along with information about the progress made on integration of the former Ladbrokes and Coral businesses into a single entity.
The newly formed gambling company said in today’s trading statement that full-year pro-forma operating profit will likely meet expectations and will stand at around £275-£285 million. Of that, Ladbrokes’ standalone operation profit is to amount to around £101 million, while Coral’s standalone operating profit is expected to total £179 million.
In comparison, Ladbrokes Coral generated 2015 pro-forma operating profit of £235 million, comprised of Ladbrokes operating profit of £80.6 million and Coral operating profit of around £154 million.
The gambling group further noted that its results are in line with management’s expectations, despite the bettor-friendly sports results in the second half of December.
Ladbrokes Coral hailed continued growth of its digital operations during the quarter ended December 31, 2016. Net revenue from its online gambling business increased 18% year-on-year. The Ladbrokes online gambling brand saw a 17% net revenue rise from the same period a year earlier, while net revenue from Coral’s standalone online operations was up 13% year-on-year. Sports gross win margins failed to meet original expectations by around 1 percentage point. These stood at 6.9% for Ladbrokes and 7.4% for Coral. Ladbrokes’ Australian division reported a 45% net revenue increase on the back of a 57% stakes growth.
UK retail revenue dropped 4% year-on-year. Over-the-counter stakes slipped 5% year-on-year and OTC margin stood at 16.5%, failing expectations by 2 percentage points. As a result, over-the-counter net revenue declined 11% from 2015. Ladbrokes Coral said that the downward trend has extended into 2017.
Ladbrokes Coral CEO, Jim Mullen, said that they are happy that the combined business has met expectations and has been performing well. The executive also added that integration has made good progress and they are confident in their plans for the year and beyond.
The fourth quarter of 2016 was a particularly important period for the newly merged gambling giant. It was on November 1 when the two involved parties closed the merger deal after selling 360 UK betting shops to rival operators Betfred, Stan James, and Bet21. Even after the disposal, Ladbrokes Coral’s combined business currently operates the largest chain of betting shops across the UK with more than 3,500 such properties.
