Ladbrokes Coral digital revenues up by a third

Ladbrokes Coral this morning posted a 33% rise in pro-forma digital revenues and a 67% jump in EBITDA, in what was the firm’s maiden set of full-year results following last year’s merger.

Total pro-forma net gaming revenues across its digital business were £666.2m, up a third on the combined £499.3m delivered by the two legacy businesses in 2015.

EBITDA was up by two thirds to £112.8m with operating profit more than doubling from £30.4m to £68.3m.

The bulk of pro-forma net revenue growth was driven by sportsbook, which grew by 51% to £310m, although gaming continued to be the main bread winner with NGR of £356.2m, up 21% year-on-year.

Total amounts staked increased by 26% to £12.3bn while sportsbook gross win margin improved by 1.0pp to 8.5%.

Although not stripped out by the firm, previously published numbers show pro-forma NGR in H2 was up 31% to £346.2m, with sportsbook NGR up 45% to £164.9m and gaming NGR up 20% to £181.3m.

The operator also gave a 2017 trading update for the year to 19 March with digital net revenue up 20% year-on-year – sportsbook up 34% and gaming 8%.

Ladbrokes Coral CEO Jim Mullen said the results represented a “very successful start” for the enlarged firm, which completed its merger on 1 November, as it bids to become number one.

“Our plan is simple,” Mullen said. “We are focused on building on the leading multi-channel experience developed by both brands, utilising a rigorous approach to data driven marketing and ensuring that our product delivers a leading customer experience.

“We will look to leverage our existing experience in international markets to drive further growth and use our significantly increased scale in technology to develop new products and deploy across the enlarged Group.

“We will deliver this with a firm commitment to responsible gambling and health and safety.

“The merger was the start of a journey. While we face some short term uncertainty with the triennial review, the scale, talent and agility we have in this business represent real strengths going forward.

“We intend to use these strengths to establish Ladbrokes Coral as both the leading, and the best, betting and gaming business.”

The operator also revealed an increased synergy target with its previously announced £65m in annual savings hiked to £100m by 2019 and with £35m delivered this year.

However, despite the growth in its online business, the Ladbrokes Coral retail division was sluggish with total Group revenues of £2.4bn, up 11% and EBITDA £380.7m, up 14%.

Ladbrokes Coral share price was down 2.3p to 133p after early morning trading.