Gala Coral revealed that despite having had to contend with additional tax and regulatory costs during the 12-week period through to July 4, the operator was able to post year-on-year growth across key financials.
Net revenue in the third quarter totalled £305 million (€429 million/$478 million), which represents an increase of 6% on the £288.7 million posted in the corresponding period last year.
Gross profit also hiked from £208.3 million in the third quarter of 2014 to £216.4 million in the same period this year, while earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 8% on a year-on-year basis to £65.7 million.
The firm’s Coral retail businesses remains the main source of income, generating £158 million in revenue during the quarter, although its online arm experienced the most growth, with revenue up £17.1 million year-on-year to £63.6 million.
Gala Coral’s impressive showing in the third quarter also had a major impact on its year-to-date results, with revenue for the 40-week period to July 4 coming in at £988.7 million, up 5% on the £938.8 million posted at the same point in 2014.
Gross profit for the year-to-date is up from £678.4 million to £707.9 million, with EBITDA also having increased by 9% on a year-on-year basis to £200.2 million.
Carl Leaver, group chief executive of Gala Coral, said: “The group posted another strong performance during the quarter with EBITDA of £65.7 million, which was £5.1 million or 8% ahead of last year, despite incurring an additional net £12.9 million of tax and regulatory costs.
“This continued positive momentum is a direct result of our focus on product innovation and a disciplined approach to marketing, together with the significant capital investment made across the business over the last few years.”
News of Gala Coral’s positive performance will come as a boost to Ladbrokes, which is currently in the process of acquiring the operator in a deal worth up to £2.3 billion.
Ladbrokes earlier this month revealed a 31% year-on-year drop in operating profit for the six months through to June 30, while pre-tax profit and profit after tax also both fell 43.9%.
source : www.igamingbusiness.com
