Seeking to pay down debt prior to a planned merger with Ladbrokes, Gala Coral reported a £49 million loss during H1, which ended on April 9.
Coral officials largely attributed the reported loss to a robust 2015 H1 report, combined with efforts to pay down Coral’s debt ahead of its merger with Ladbrokes.
Coral reported a £160 million gain a year ago, with its profits being boosted by Gala Bingo sales.
This year, Coral said net revenues were up 13 percent this year at £604 million. Its EBITDA improved by 16 percent at £124.6 million, up from £107 million last year.
“EBITDA growth of 16 percent in the first half of the year represents a very satisfactory performance,” Gala Coral Group CEO Carl Leaver said in a statement. “After adjusting for incremental regulatory costs, EBITDA was 43 percent ahead.”
Leaver said Coral’s sportsbook operation did particularly well.
“Sportsbook margins benefitted from improved football results in both the UK and Italy, and a good Grand National result helped offset losses from the worst Cheltenham for the industry since 2003,” he said.
Coral’s digital wing reported a £37 million EBITDA, while its Coral Connect multi-channel offering reported more than 16,000 new subscribers during H1, outpacing its performance for all of last year.
The firm’s online operations are 35 percent ahead of last year and growing by about 4,000 subscribers per week, thanks to its targeted marketing campaigns. It now has about 493,000 subscribers.
Before Coral and Ladbrokes can merge, UK regulators want both firms to divest themselves of up to 400 high-street stores.
