LONDON (Alliance News) - Ladbrokes PLC on Monday outlined the fourth quarter and full-year results for the parts of Gala Coral Group Ltd with which it will merge, showing adverse sporting results are currently holding back the business.
Ladbrokes shareholders approved the GBP2.1 billion last week, despite opposition to the deal from prominent shareholder Dermot Desmond, an Irish billionaire.
Ladbrokes said net revenue for the Coral Retail, Eurobet Retail and Online businesses in the year to September 26 was GBP1.01 billion, 6.0% ahead year-on-year, as earnings before interest, taxation, depreciation and amortisation grew 1.0%, helped by strong growth in the online business.
Earnings were held back by margin compression in the first and second quarter of the financial year, due to the introduction of the point-of-consumption tax in the UK and of restrictions on high-stakes fixed-odds betting terminals at the end of the second quarter.
Since the end of the financial year, covering the eight weeks to November 22, like-for-like sales in the Coral Retail business were up 2.3%, while Eurobet Retail sports stakes were 33% higher and Coral online sports stakes rose 60%, all year-on-year. Football results, however, have been poor in both the UK and Italy, hitting the Coral Retail and Eurobet Retail businesses, in particular.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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