20th Aug 2015 07:10
20 August 2015
LADBROKES PLC
Coral Group
Q3 Results - Twelve weeks ended 4 July 2015
Gala Coral Group Limited ("Gala Coral") has today announced its Q3 results for the twelve weeks ended 4 July 2015. The full announcement can be viewed on the following website:
http://www.galacoral.co.uk/financial-centre/results-centre/2015
In accordance with Listing Rule 5.6.15G(4), Ladbrokes plc ("the Company") discloses the following extract from Gala Coral's Q3 results in relation to the Coral Group (comprising Coral Retail, Eurobet Retail and Online, but excluding Gala Retail) for the twelve weeks ended 4 July 2015:
"Coral Retail
Coral Retail EBITDA{1} of £34.9m was £0.6m or 2% behind last year. Adjusting FY14 for the adverse impact of MGD / high stakes restrictions (-£7.2m) and the World Cup (-£4.3m), underlying EBITDA{4/5} was £10.9m or 46% ahead.
OTC net revenue was £0.6m or 1% behind last year, and £4.5m or 7% ahead after adjusting for the World Cup. The strong underlying result (i.e. excluding the World Cup) was driven by football margins 8.7pp ahead of last year and football stakes 18% ahead driven in part by the later finish to the domestic football season compared to last year.
Machines net revenue was £1.7m or 2% ahead of last year and gross win per-machine-per-week of £963 was £7 or 1% ahead, despite the adverse impact of the restriction on high-stakes (>£50) play which is estimated at around 5% of gross win, in line with expectations.
Operating costs were £2.0m or 2% lower than last year as a result of annualised payroll savings and lower media content costs.
Eurobet Retail
Eurobet Retail EBITDA{1} of £3.7m was £1.6m or 30% behind last year, primarily due to last year's World Cup.
Adjusting FY14 for the World Cup, underlying EBITDA{1/5} was £0.2m or 5% behind, with sports stakes 56% ahead, supported by a 94% increase in Bet-in-Play stakes. Eurobet's share of the retail sports-betting market reached 14.9% in the quarter, up 3.3pp versus last year.
Retail virtual betting volumes were 12% lower than last year, in-line with the market which saw a softening of demand following the introduction of the product last year. Virtual market share in the quarter increased to 17.8%, 2.9pp ahead of our share of the sports market.
The shop optimisation programme, whereby we are relocating 140 of our poorer performing shops is well under way, and is expected to be complete by the end of the financial year. Early results from the newly located shops are encouraging.
Operating costs were £0.8m or 44% higher than the previous year, reflecting the higher costs of supporting the larger estate and the increase in Bet-in-Play live feed costs.
Online
Online EBITDA{1/2} of £17.1m was £3.7m or 28% ahead of last year. Adjusting FY14 for the impact of Point of Consumption tax (-£6.2m) and the World Cup (-£1.6m), EBITDA{4/5} was £11.5m or 202% ahead.
Coral.co.uk net revenue was 69% ahead of last year or 81% ahead excluding the World Cup. New customer acquisition rates remain very strong with competitive offers and multi-channel driving acquisition rates 19% ahead of last year.
Coral.co.uk sports net revenue was 102% ahead of last year (149% ahead excluding the World Cup) with spend-per-head 54% up, driven by an improved product offering. Sports margin was 1.7pp ahead of last year with UK horse racing results ahead of expectations. Bet-in-Play now represents 53% of sports stakes (excluding horseracing), an increase of 5.2pp over the previous year. Mobile now accounts for 68% of Coral.co.uk sports stakes with mobile stakes 80% ahead of the prior year (62% excluding the World Cup).
Coral.co.uk gaming net revenue was 52% ahead of last year, with mobile representing 65% of gaming stakes (mobile gaming stakes up 83%).
Galabingo.com net revenue was 23% ahead helped by the launch of additional exclusive content and higher actives, which increased by 13% due to effective retention and reactivation programmes. During the quarter, the Galabingo.com mobile site and app was voted the 'Best Bingo Mobile Experience' at the Which Bingo awards. Mobile now accounts for 51% of stakes with mobile stakes 71% ahead of the prior year.
Galacasino.com actives were 94% ahead of last year following a high level of promotional activity. However, a number of large winners left margin 0.4pp lower than last year and net gaming revenue £0.9m or 25% behind. Mobile now accounts for 57% of stakes with mobile stakes 20% ahead of the prior year.
Eurobet.it actives were 10% ahead of last year's World Cup quarter, with over half of new depositors in the quarter recruited through the shop estate. Sports stakes were 60% ahead, but gross win margin was 3.9pp behind last year's particularly strong level. Gaming net revenue was in-line with last year with an increase in casino games net revenue (+32%) offset by market-led declines in poker and virtual racing. Eurobet.it maintained its position as number 2 in the Italian online sports-betting market throughout the quarter."
{1} | EBITDA is stated pre-exceptional items | |
{2} | Results include all revenue and expenses for the continuing Opco Group and exclude Propco rental income (Q3 FY15: £0.0m and Q3 FY14: £6.6m,) and High Roller activity (Q3 FY15: -£8.5m and Q3 FY14: £0.0m) | |
{3} {4} | Quarter 3 represents the 12 week periods ending 4 July 2015 and 5 July 2014. FY14 EBITDA rebased for the estimated impact of Point of Consumption Tax (-£6.2m), the increase in rate of MGD to 25% and DCMS FOBT high staking restrictions (-£7.2m) and the reduction in Bingo Duty (+£3.2m), calculated as if all changes had been in existence for the corresponding periods in FY14 | |
{5} | World Cup impact (previously reported as £8.4m) is now stated net of "cannibalisation" of other OTC products in Coral Retail, which is estimated at £1.1m, resulting in an restated World Cup impact of £7.3m of which £4.3m was in Coral Retail |
IMPORTANT NOTICE:
The information contained in this announcement is not for release, publication or distribution to persons in Australia, Canada, Hong Kong, Japan, New Zealand, Singapore, the Republic of South Africa or the United States or in any jurisdiction where to do so would breach any applicable law. No public offer of securities is being made by virtue of this announcement.
This announcement has been prepared for the purposes of complying with the applicable law and regulation of the United Kingdom and the information disclosed may not be the same as that which would have been disclosed if this announcement had been prepared in accordance with the laws and regulations of any jurisdiction outside of the United Kingdom.
No statement in this announcement is intended as a profit forecast of the Company or a profit estimate of the Company and no statement in this announcement should be interpreted to mean that earnings per share of the Company for the current or future financial years would necessarily match or exceed the historical published earnings per share of the Company.
Certain figures contained in this announcement, including financial information, have been subject to rounding adjustments. Accordingly, in certain instances, the sum or percentage change of the numbers contained in this announcement may not conform exactly with the total figure given.
This announcement is for information purposes only and does not constitute a prospectus or offering memorandum or an offer in respect of any securities and is not intended to provide the basis for any decision in respect of the Company or any other entity and should not be considered as a recommendation that any investor should subscribe for or purchase any such securities. Neither the issue of this announcement nor any part of its contents constitutes an offer to sell or invitation to purchase any securities of the Company or any other entity and no information set out in this announcement or referred to in other written or oral information is intended to form the basis of any contract of sale, investment decision or any decision to purchase any securities in it.
- Ends -
Related Shares:
Ladbrokes Coral