Ladbrokes lifted by Gala Coral results ahead of merger

(ShareCast News) - Ladbrokes has reported mixed results from Gala Coral Group, with which it is in the process of merging, with weakness at its retail and Italy-focused Eurobet arms but overall profits growth lifted by strong online performance.Total continuing group earnings before interest, tax, depreciation and amortisation (EBITDA) rose 8% to £65.7m, with the impact of an additional net £12.9m of tax and regulatory costs and tough comparison with a World Cup-boosted quarter last year.Coral's retail EBITDA was down 2% on the comparable year to £34.9m, with Eurobet particularly affected by the World Cup comparison with EBITDA down 30% to £3.7m.However, online earnings were up 28% to £17.1m.Gala retail, which is not merging with Ladbrokes, increased EBITDA 3.7% to £11.9m.Ahead of the proposed merger between Coral and Ladbrokes being put to the FTSE 250 group's shareholders, Coral chief executive Carl Leaver said the parties had "already opened dialogue" with the Competition and Markets Authority about the deal.He added that ignoring the tax and regulatory changes and the World Cup, underlying EBITDA was £22.6m or 52% ahead."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."Shares in Ladbrokes were up 2.3% to 107.7p by 0845 BST.