8: Ladbrokes Coral (2016)
By the time this magazine hits the desks the merger of Ladbrokes and Gala Coral could have been finalised and, if that’s the case, we would have witnessed the creation of a new power player in the UK market. According to egaming research firm Eilers & Krejcik Gaming, Ladbrokes and Coral hold a 6% and 5% share of the UK online market respectively, which when combined puts them just in behind third placed bet365 in what is Europe’s largest market.
Both firms have certainly been on the rise – Gala Coral during the past three years and Ladbrokes over the last 18 months. How much of that is marketing bluster and how much is due to genuine customer loyalty and quality of product, we can’t yet be sure. But what we can be sure of is that Ladbrokes Coral has the largest retail estate in the UK, and one which both firms – particularly Gala Coral – will be able to utilise for online gains.
Although Ladbrokes Coral is primarily UK-focused, the firm has two international strong points in the shape of Ladbrokes’ Australian arm and Gala Coral’s Italy-facing Eurobet brand. While Ladbrokes will have to overcome the loss of its well-respected Australia CEO Dean Shannon next year, Eurobet goes from strength-to-strength, taking the number two position in the sportsbook market behind leaders bet365 and winning Operator of the Year at the EGR Italy Awards.
While Ladbrokes Coral pro-forma revenues amount to more than SB&G’s, which is one place higher in the Power 50 list, the merger and subsequent people and technology integrations bring an element of uncertainty for the Jim Mullen-led firm. The next 12 months will be a pivotal period for Ladbrokes Coral, at the end of which we should have a much clearer picture of the combined firm.