Ladbrokes Coral in line despite 'mixed' sports results

Bookmaker Ladbrokes Coral Group updated the market on its trading for the period from 1 January to 23 April on Thursday, claiming that it remained in line with expectations despite “mixed” sporting results.

The FTSE 250 company said digital net revenue was up 22%, or 18% at constant currencies, with sportsbook net revenue 40% firmer - 32% higher at constant currencies - and gaming net revenue rising 7%, or 6% at constant currencies.

UK retail net revenue was down 2%, and European retail net revenue was off 3%, or 15% at constant currencies.

Group net revenue overall was 5% improved, or 2% at constant currencies.

The board said the integration of Ladbrokes and Coral was still progressing “well”, with the successful transition to a single digital IT platform already complete.

“Trading in the period was in-line with our expectations,” confirmed group CEO Jim Mullen.

“We see encouraging trends in digital sportsbook and gaming with continued enthusiasm for our multi-channel products in all our major markets and over a million customers now signed up in the UK alone.”

Mullen said sporting results in the UK during the period “gave with one hand and took with the other”, but the company was “probably” marginally ahead overall.

“As previously communicated, sports results in Italy were unusually bad in February and March and have had an adverse impact on our Eurobet business, but pleasingly results have been a lot stronger in April.

“UK retail over-the-counter stakes continue to exhibit the negative trends reported since the middle of 2016, driven by the challenging UK high street environment and our own focus on the multi-channel opportunity.”

Merger integration continued at pace, Mullen reported, with “significant changes” undertaken in its digital operations as it had already successfully completed the transfer of all key Ddgital systems to one unified platform.

“We have also commenced large scale moves of colleagues from Rayners Lane to Stratford, in-line with our property plans.

“The online market remains highly competitive, although recent high profile sporting events seem to indicate that as much emphasis is being placed on customer retention as is being placed on the acquisition of new customers.”

The group’s plan was to continue to use its data-driven marketing approach and leverage its “market leading multi-channel capability” to enhance returns, Mullen explained.

“We remain confident in the opportunities ahead for the business and in our ability to deliver the year in-line with our expectations.”