Online performance boosts Gala Coral revenues
Interactive business turnover increases 24% in Q3 compared to the same period last year.
Gala Coral Group has posted an overall increase in turnover of 9% to £275.2m for the three months ended 30 June, with its interactive arm showing positive growth in the period.
Turnover of online operations increased 24% in Q3 compared to the same period last year, with total amounts staked 12% up year on year and gross win 27% ahead.
Gala Interactive, headed up by former PartyGaming COO Per Widerstrom and covering the online operations of the Gala Bingo and Gala Casinos brands, showed strong growth in active customer levels, up 61% compared to the corresponding period in the prior year.
In its first full period of trading, gross win delivered by the new galacasino.com site “ launched following the operator’s landmark deal with Playtech in 2011 – was 158% ahead of the prior year, albeit off a low base.
Online sports betting business Coral Interactive meanwhile also performed strongly in the quarter, with active customer levels 34% up from last year. Total stakes increased 8%, with sports staking levels 5% ahead.
Excluding the impact of the Grand National and Euro 2012, Coral Interactive gross win was 52% ahead of Q3 in 2011. However operating costs for the interactive businesses were £3m higher in Q3 2012 due to increased marketing spend.
Carl Leaver, CEO of Gala Coral Group, said: “These results reflect the reinvestment we have made within the Group in 2012 and the hard work of management and colleagues across all businesses in delivering growth initiatives. Despite this progress we are still cautious about the economic environment and have seen some weakening in recent trading.
“This quarter also saw the re-launch of galacasino.com, the first of the new websites delivered by our strategic re-platforming project. Early results have been positive, and this was followed by the re-launch of galabingo.com just after the end of the quarter. We believe these sites will be market leading offerings, and will represent a springboard to growth for the Group over the next few years.”
Overall, group gross profit grew by 11% to £216.9m. All of Gala Coral’s businesses delivered divisional gross profit growth in the quarter, with group EBITDA at £64.2m – £7.9 million ahead of the prior year.
Away from the online side of operations, Gala Coral’s sale of the bulk of its land-based casino estate to Rank Group was approved by the latter’s shareholders shortly after the end of the third quarter.