A 12 percent increase in online revenue has helped Ladbroke’s Coral report a 3 percent increase in net revenue in its third quarter trading update.
The increase offsets a 1 percent decline in the bookmaker’s retail operations. The firm’s retail sector is running four percent below projections for the year.
The firm said it has moved to strengthen its racing content through a new content deal with The Racing Partnership. The firm also said in the report it will make structural improvements to its UK retail division helping improving long-term profitability.
Though its UK retail revenue declined, the report also pointed to strong gains of its European Retail portfolio, which recorded a 17 percent net revenue increase during the period.
“The four-month period to 29 October represents another period of positive trading performance for the group as well as solid delivery on the key operational and financial targets for the year including the swift integration of people, operations and platforms,” said Ladbrokes Coral Group CEO, Jim Mullen in a press statement. “Our Digital performance is strong and the Ladbrokes brand in Australia and the Eurobet brand in Italy continue to post very strong revenue growth.”
The company still has to deal with the probable lowering by UK regulators on the maximum bet allowed at fixed odds betting terminals. The UK government was expected to announce a recommendation for a new limit last month, but instead opened a public comment period on the proposed change.
A reduction from a 100 pound limit is expected to make a major slash in revenue for retail bookmakers in the UK.
“Ladbrokes Coral reached its first birthday on 1st November, the day after the further consultation on the Triennial Review was announced,” Mullen said. “We have existed with the uncertainty caused by the review since we were created and hope that the announcement of a 12-week consultation heralds a positive step to reaching a final outcome. We will take a full part in the consultation.”
