UK-based bookmaker, Gala Coral, has revealed positive performance for all its divisions in the fourth quarter of the fiscal year ending September 25, 2016, ahead of its planned merger with Ladbrokes.
Net revenue increased 8.9 percent compared to the same period last year. The company attributed this growth to the strength of its online business. Online revenue rose 23.7 percent during this period which was boosted by the performance of its primary website, Coral.co.uk which saw revenue increase by 31.7 percent following a jump in sports stakes.
Also due to an increase in sports stakes, Coral reported a 31.2 percent increase in revenue from their Eurobet retail business. The company also reported increased revenue from their Coral retail business with an increase of 0.3 percent which it attributed to improvements in OTC gross win margin and machines growth.
“Growth in the quarter reflects the continued momentum in the group,” announced Carl Leaver, CEO of the Gala Coral Group. “The online performance was pleasing and in particular Coral.co.uk, where growth rates accelerated from the prior quarter.”
“This leaves the business very well placed ahead of the imminent merger with Ladbrokes PLC subject to final Competition and Markets Authority approval.”
In a major step towards satisfying the CMA, Coral and Ladbrokes announced earlier this week that they have accepted bids from Betfred and Stan James to buy 359 of their retail betting shops that they were required to sell in order to satisfy CMA concerns over competition. Their combined bid of £55.5 million for all the shops was accepted over a bid made by Irish bookmaker, Boylesports who is challenging Coral-Ladbrokes’ decision.
The companies are now facing the final hurdles of their merger with a new investor prospectus to be issued soon.