Gala Coral’s main online gaming brands have continued their turnaround following their migration to Playtech-owned software platforms, the betting and gaming operator’s second quarter trading update has shown.
Gala Interactive, consisting of GalaBingo.com and GalaCasino.com, generated an impressive 28% year-on-year uplift in gross profit to £12.3m in the 12 weeks to 23 April, as gross win increased 49% to £18.3m. Earnings (EBITDA) were up 27% to £6.6m.
The bulk of the improvment was generated by GalaBingo.com, which migrated from proprietary software to Playtech’s Virtue Fusion network in July of last year. The operator’s online bingo brand accounted for £10.6m of the division’s £12.3m gross profit in the period. Gala Coral said a high-profile marketing push associated with hit ITV1 television show Saturday Night Takeaway had helped to boost active player numbers.
Coral Interactive, consisting of all sports betting and Coral-branded online gaming offered at Coral.co.uk, also saw strong growth in volumes during the quarter, with stakes up 120% to £293.9m, gross win 110% to £12.3m and active players by 116%.
However, high costs associated with the “bow wave” of marketing investment the Group said was needed to create the foundation for future growth saw the Coral Interactive arm post an overall loss of £2.3m compared to a £0.3m profit for the comparable period a year earlier, due to a huge £5.4m or 162% increase in operating costs, with £3.6m of this spent on marketing.
Group chief executive Carl Leaver noted that both interactive divisions had grown volumes “strongly”, and described the overall performance of the online and retail betting and gaming operator during the quarter as “satisfactory”, as the group’s gross profit increased 6% to £234m and earnings by 3% to £74.2m.
The sale of 19 casinos to Rank for £179m during the period also reduced the group’s net debt to £2.08bn.
Article written by Katy Stirland
