Gala Coral reveals online and retail growth as revenue jumps in Q1
Gala Coral has highlighted growth across its online and retail divisions after it was able to achieve a year-on-year increase in revenue during the 16 weeks to January 16, 2016.
Net revenue in the first quarter totalled £333.3 million (€432.1 million/$469.7 million), an increase of 16% on the total posted in the corresponding period last year.
Earnings before interest, tax, depreciation and amortisation (EBITDA) was up 14% year-on-year to £62.4 million, although adjusting results for the impact of regulation meant that this figure increased by an additional £23.1 million and represented growth of 59% on the previous year.
Gala Coral’s online business witnessed the largest growth, with EBITDA from this area of the firm increasing from £6.6 million to £18.5 million, without accounting for the impact of regulation.
Coral.co.uk generated revenue of £47.6 million, 69% more than last year, while the GalaBingo.com website reported a 34% year-on-year increase in revenue to £25.8 million.
The company’s retail business saw EBITDA expand by £200,000 to £40.7 million, although this growth is increased to £9.6 million (31%) when the results are adjusted for the impact of regulation.
The results come at a crucial time for Gala Coral, which is expected to finalise its previously announced merger with rival operator Ladbrokes later this year.
In January, the UK Competitions and Markets Authority (CMA) said it will rule on the proposed deal by June 24, after proceeding with a ‘fast track’ investigation of the agreement.
Related article: CMA to rule on Ladbrokes-Coral merger before June 24