Lads Coral online revenues up 11% despite Ladbrokes setback
Digital performance and retail growth in Italy and Australia sees net revenues rise 2%cc
Ladbrokes Coral has reported a 2%cc rise in net revenue for H2 thanks to strong growth in its online and European retail business.
Online net revenue rose 11%cc, thanks in part to a 16%cc increase in digital sportsbook revenue and a 6%cc increase in online gaming revenue, particularly in Australia and Italy.
Coral was the operator’s best performing brand in the UK market at +13%, while +10% performance from Gala Bingo was broadly in line with market leader, Jackpotjoy.
However, Ladbrokes was down 9% as UK retail amounts staked fell 5% leading to a 4% decline in net betting revenue.
Ladbrokes Coral Group CEO, Jim Mullen said: “Our Digital performance is strong and the Ladbrokes brand in Australia and the Eurobet brand in Italy continue to post very strong revenue growth.
“In the UK, the Coral and Gala brands also posted very pleasing growth, and we continue to transition our approach to customer acquisition and retention in Ladbrokes.com to focus on improved profit conversion.”
And Mullen reiterated the firm’s commitment to adhere to the findings of the DCMS’s triennial review, after a 12-week consultation period was announced on 31 October.
“Ladbrokes Coral reached its first birthday on 1 November, the day after the further consultation on the triennial review was announced,” added Mullen.
“We have existed with the uncertainty caused by the review since we were created and hope that the announcement of a 12-week consultation heralds a positive step to reaching a final outcome.”
Paul Leyland of Regulus Partners said: “LCL is a stronger and more capable business than either of its constituents, including in being able to mitigate any impact from the DDCMS Review. However, underlying trading is mixed at best, with weak UK retail results seemingly being accepted as inevitable and market share losses in UK online betting – the key competitive battleground for the group.
“Strong growth from Australia is likely to be facing significant tax headwinds as well as tougher comps, while European growth is also largely comps driven.”