Gala Coral reports strong opening to 2015 as Interactive drives performance

Carleaver
Carl Leaver – Gala Coral

Gala Coral reported a strong start to 2015, as the operator saw strong multi-channel growth recording Total Group EBITDA of £67.3 million for Q1 2015, up 11% on 2014 £60.5 million.

The operator highlighted its strong interactive performance as the driver for its positive Q1 results as the division saw revenue performance up 27% to 45.6 million. Its increased revenue performance impacted positively on interactive EBITDA performance which saw gains of 19%  for the period to £12.9 million (Q1 2014 £10.8 million)

Gala Coral was able to maintain improved digital performance despite impacts from adverse football results during the period (impact – £5.3 million) and new Point of Consumption tax charges (impact £3.6 million)

Coral.co.uk actives were 49% ahead of the same quarter last year and spend-per-head was 17% ahead. Ongoing improvements to both the sportsbook product offering and the mobile user experience were well received by customers

Coral’s Retail division recorded EBITDA of £40.1 million, £0.1 million ahead of last year, despite an increase level of adverse football results during the quarter (2015 impact: £10.7 million, 2014 impact: £6.4 million). Machines gross win was 4% ahead of last year, with gross win per machine per week reaching £975.

The operator was able to report on the positive impact of its Coral Connect Card, which continued to see increased use with all age group and demographics, as the firm reported that Connect Customers had twice as much spend as average betting customers.

Carl Leaver, Gala Coral Group CEO commented:

“The Group has continued to leverage the investments it has made in its key drivers of growth: Online, Multichannel and Italy, delivering an increase in EBITDA of £6.8m or 11% compared to the same quarter last year.

“This was despite some very poor football margins in both the UK and Italy. We continued to see very strong growth in our Online division with actives 49% ahead in Coral.co.uk and 39% ahead in Eurobet.it driven by successful marketing campaigns. Spend-per-head was 17% ahead in Coral.co.uk and 33% ahead in Galabingo.com, due to product improvements and effective CRM.”

“Coral Connect continues to drive sign-ups to Coral.co.uk in our shops. Connect customers are cheaper to acquire and significantly more valuable than single-channel customers, demonstrating the value of our multichannel platform. On the regulatory front we have continued to work constructively with Government and the regulator. However, the forthcoming election brings a degree of uncertainty.”

Gala Coral Q1 2015 Performance Overview

galacoral

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