Ladbrokes Coral net revenue rises, trading in-line with expectations

Sports Betting

Ladbrokes Coral Group PLC has reported growth in revenue in the first quarter of 2017 and said it is confident it will meet expectations for the full year.

The groups net revenue rose by 5% in the quarter ended April 23, boosted by 22% growth in digital net revenue, 40% growth in sportsbook net revenue, and 7% growth in gaming net revenue.

Retail net revenue, however, fell by 2% in the UK and by 3% in Europe. Within the former, Ladbrokes said OTC stakes continued to exhibit the negative trends reported since the middle of 2016 as a result of a challenging UK High Street environment, and as Ladbrokes continued to focus on its multi-channel offering.

“Sporting results in the UK gave with one hand and took with the other but we are 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,” Chief Executive Jim Mullen said in a statement.

“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,” he said.

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

Shares in Ladbrokes were trading down 3.0% at 124.60 pence on Thursday, among the worst performers in the FTSE 250.