Gala Coral reveals widespread growth in third quarter

Gala Coral has posted year-on-year financial growth for the 12 weeks through to July 2, despite having to contend with new regulatory requirements.

Net revenue came in at £264 million (€310.3 million/$345.6 million) in the third quarter, up by 10% on the previous year.

Earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 13% to £57.7 million, with the firm’s retail business responsible for £31.9 million of this total, slightly less than last year.

Coral also confirmed that EBITDA from its Eurobet retail arm climbed by 47% to £5.3 million, with a 38% increase in sports stakes, while EBITDA from the Coral online business grew by 26% to £21.6 million.

The third-quarter results place Coral’s net group revenue for the year-to-date at £868.9 million, 12% more than at the same point last year.

Group EBITDA is also up by 15% to £182.3 million, with online EBITDA also up 26% to £21.6 million.

Carl Leaver, group chief executive, said: “Whilst we were pleased with our ongoing online net revenue growth of 19%, it is worth noting, as highlighted at our H1 results, this growth rate was held back by new regulatory requirements, including teething problems around the introduction of new player protection measures.

“We estimate that net revenue would have grown by 28% absent these factors. OTC staking in Coral Retail was also impacted by these new requirements.

“Current trading in the eight weeks post the quarter end has been positive, with continued machines growth in Coral retail, and strong volume growth in online.

“Sports gross win margins are, however, behind last year’s levels primarily due to very poor UK horse racing results in the week commencing August 15.”

The future of Coral remains uncertain, with an offer from Ladbrokes to acquire the operator still being looked at by regulatory authorities.

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