Reporting its 2017 H1 results (period ending 30 June), FTSE-listed Ladbrokes Coral Plc has declared that the integration process between the two operators, ‘has continued at pace’ and enabled ‘significant improvements in operational efficiency.’
Reaping the benefits of a hike in digital betting, Ladbrokes Coral reported digital net revenue of £374.5 million, a 17% rise on the results of a tough 2016 comparable period, with a 21% increase if excluding Euro 2016.
After the completion of its £2.3 billion merger last summer, the group declared operating profits of £158.3 million up 7% on the previous set of results, with overall group revenue rising 1% to £1.19 billion.
The firm’s continued digital growth, would offset a tough opening H1 2017 period for its retail betting division which recorded declines across its KPIs, posting a 10% decline in pro-forma operating profits of £102 million. Ladbrokes Coral governance has informed that its enlarged retail division is undertaking a ‘planned actions’ to improve profitability.
Looking ahead, Ladbrokes Coral CEO Jim Mullen said: “Ladbrokes Coral continues to make good operational and financial progress. We entered the year with ambitious targets for the first half to substantially complete the integration of our teams and migrate UK Digital to a single platform. We delivered on both fronts and at the same time kept the business moving forward.
“It is pleasing to report strong digital growth. UK retail performance is in line with our expectations given the planned commercial decisions on UK racing media rights and Ladbrokes’ horse racing margin, both of which will protect the profitability of our shop estate well into the future.
“The business is now looking to the second half with confidence. Following the digital platform migration, the product pipeline is flowing again with some exciting enhancements arriving in time for the new football season” Mullen added.
“A new model aimed at optimising our online customer acquisition marketing mix is already driving improved effectiveness, supporting enhanced returns on investment through a focus on higher value customers. Finally, the synergies from our recent merger step-up substantially in the second half to deliver a full year saving of £45m.”
Ladbrokes Coral H1 2017 Overview
Source: SBC News
