Ladbrokes Coral merger to be completed in autumn

“A number of parties” have expressed interest in buying 350-400 shops from the Ladbrokes Coral merger.

UK.-  Ladbrokes Coral merger is steaming ahead and will be completed by autumn. During Gala Coral financial report for the 12 weeks ended 2 July (Q3) the company announced that a number of parties have expressed their interest in buying 350-400 shops both companies are forced to sell in order to complete the Ladbrokes Coral merger.

Gala Coral reported group net revenue increased 10 percent year-on-year to £264 million as EBITDA went up 13 percent to £57.7 million, while gross profit ascended 11 percent to £184.6 million. In terms of Coral retail, net revenue was £165 million, up 5 percent and gross profit increased by 6 percent to £122.8 million. Furthermore, net revenue and gross profit increases were also reported for online, to £76.3 million, climbing to 19 percent and £53.1 million a 25 percent increase.

“Online customer acquisition volumes during the Euro 2016 football championships were encouraging,” said Carl Leaver Gala Coral CEO regarding the company’s performance during Euro 2016. “As in the 2014 World Cup, Coral did not advertise on TV, instead focussing marketing investment on channels where we see a positive return. Our predictive models indicate that the value of customers acquired during the Euros is around double the levels achieved in the 2014 World Cup. Combined with very competitive costs of acquisition, this will drive impressive returns on our marketing investment.”

Back in July, the Competition and Markets Authority ruled that the Ladbrokes Coral merger can proceed, provided that they sale 350-400 shops. Gala Coral announced: “A number of parties have expressed interest in purchasing these shops, and the disposal process is well under way. As previously guided, we expect to complete the merger during the autumn.”