Digital star performer in Ladbrokes Coral update

Ladbrokes Coral detailed a trading performance in line with expectations in an industry update, Monday.

The update, which covers the period from July 1 to October 29, 2017, showed declines in UK Retail revenues and OTC stakes which were offset by a good performance in digital.

Key performance highlights include:

– Group net revenue up 3 percent compared to a decline of 2 percent in the second quarter (H1 +1 percent)

– Total Digital net revenues were up 12 percent.

– Online sportsbook net revenues increased 18 percent and online gaming net revenues were up 6 percent.

– UK Retail like-for-like (LFL) net revenue declined 1 percent and LFL OTC stakes were down 5 percent (Q2: -9 percent; H1: -8 percent)

– European Retail net revenue grew 17 percent (in constant currency – 12 percent)

Jim Mullen, chief executive officer of the Ladbrokes Coral Group, said:

“The four month period to 29 October represents another period of positive trading performance for the Group as well as solid delivery on the key operational and financial targets for the year including the swift integration of people, operations and platforms.”

Mullen highlighted the strength of its digital offer saying business divisions Ladbrokes Australia and Eurobet Italy continue to post “very” strong revenue growth along with a “pleasing” performance from its UK digital businesses.

Ladbrokes.com.au delivered a 41 percent increase in sports stakes and a 50 percent increase in net revenue. Eurobet.it sports stakes were 35 percent up y-o-y, with sports gross win margins improving strongly from a poor start to the year, helping to drive sports net revenue growth of 36 percent on a constant currency basis.

“The period also saw a significant reduction in the use of affiliate acquisition channels across all UK brands,” Mullen pointed out.