Despite an excellent online performance, Gala Coral still finds itself struggling due to rising costs and debt payments.Online sports betting revenue more than doubled year-on-year, but Gala Coral still lost not far shy of £50 million in fiscal H1.
Debt and new taxes
The company blamed the loss of £49.8 million, a big difference from the £103.4 million profit a year ago (although that included the sale of its bingo operations) on paying down debt, new taxes, and increasing costs.The costs around the company’s forthcoming merger with Ladbrokes, as well as training staff on new anti-laundering and customer protection measures were cited as reasons for the loss.
Overall revenue was up 13% to £605m, with the majority of those gains coming online. Coral retail revenue also improved, up 4.3% to £382m and the continental Eurobet retail division also rose up to, 29% to £54.9 million, Gala Coral’s online operations surged 45% to £166.2 million. Coral.co.uk’s sports betting revenue rose 108% to £32.7 million while the site’s gaming revenue was up 38% to £53.4 million.There were raises in revenue year-on-year across the board, with even OTC betting revenue rose 5% to £165.7 despite falling stakes and the worst Cheltenham Festival in well over a decade, those losses being predominantly offset by good Grand National results.
Gala Bingo up
Galabingo.com revenue was reported to have gone up by 15% to £47 million, with 60% of stakes coming from mobile and tablet users.Galacasino.com revenue fell by 17% to £1.2 million after a planned reduction in marketing.