Ladbrokes Coral expecting bigger savings from merger
BRITAIN’S LARGEST bookmaker Ladbrokes Coral Group said it expected to find higher savings from last year’s merger and reported a small increase in firsthalf group net revenue.
The group, created by the merger of Ladbrokes and Gala Coral last year, increased its guidance for annual savings from the deal to £150m from £100m.
The company had previously upgraded its forecasts for cost benefits from the merger to £100m from £65m.
It said first-half revenue had increased by 1 per cent helped by a 17 per cent rise in digital net revenues, which was 21 per cent ahead after adjusting for the Euros in 2016.
Ladbrokes said first-half total operating profit is expected to be within the range of £153.3m to £158.3m and that it remained on course to meet expectations for the full year results.
Jim Mullen, CEO of Ladbrokes Coral, said the firm had delivered a “strong performance” in the first half.
He added: “Digital has performed well, with net revenue growth of 17 per cent particularly pleasing against a backdrop of a significant period of platform integration and a competitive trading environment.
“In UK retail, a key management focus has been on addressing some areas of ongoing inflationary pressure on the cost base and on improving gross win margins.”
The betting firm has been trying to increase its share of the online gambling market as a possible crackdown by the government on profitable betting terminals in high street shops threatens to hit its retail operations.
The merger of Ladbrokes and Coral was one of a number in the gambling sector, with Paddy Power and Betfair also having joined forces. The Paddy Power-Betfair merger was valued at £5bn.
Mr Mullen said: “On integration, we have successfully migrated our UK Digital brands to a single platform and completed the consolidation of our head office team.
“The further synergies identified re-emphasise the merits of the merger and the potential of the enlarged group, with the additional savings delivered in 2017 offsetting the impact of current UK Retail run rates.”
Ladbrokes Coral Group was created from the £2.3bn merger of Ladbrokes and Gala Coral in October 2016. Mr Mullen, who was CEO of Ladbrokes, took over as chief executive of the combined group.