Ladbrokes Coral Raises Estimate on Savings from Merger

Sat, Apr 1, 2017

Ladbrokes Coral Plc announced that cost savings from the recent merger of the two companies will be higher than initially projected. The company said costs synergies will save the company 100 million pounds, up from an initial expectation of 65 million. About 25 percent of the savings come from worker layoffs.

The merger of Ladbrokes and Coral will result in savings of 100 million pounds, the newly merged company announced.

That’s up significantly from earlier projections that the merger would save the new company 65 million pounds.

“The challenges around integrating two significantly sized companies has been managed well,” Chief Executive Officer Jim Mullen told Bloomberg News. “You get access to more detail post the merger and you also maybe change your plans slightly about the acceleration of how you can deliver.”

About 25 percent of the savings have come from staff reductions with the rest coming from trading, digital platforms and back office, Mullen told the financial wire service.

The company’s results for 2016 showed pro-forma operating profit of 264.3 million pounds, in line with a previous forecast given by the company. A reported loss of 202.4 million pounds included 323.6 million pounds of non-trading items, partly related to November’s merger, Bloomberg said.

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