European sportsbook giant Ladbrokes Coral Group has confirmed that it is set to reach its financial targets for 2017 following “strong performance” in the first half of the year.
In its six monthly filing, the company reported that its biggest gains were in sports net revenue which jumped 25% year-on-year while sports stakes grew by 23% in the period.
Digital revenue increased 17% year-on-year while gaming net revenue and sportsbook led revenue grew by 11% and 15% respectively.
Total group net revenue only grew 1% year-on-year and total group operating profit for the first half of 2017 is expected to be within the range £153.3m to £158.3m - 4% to 7% ahead of last year.
Net revenue received from retail operations in the UK dropped by 6%, while over-the-counter (OTC) revenue fell by 11%, with stakes dropping by 7%.
Its European retail business suffered a similar 1% drop in net revenue, however its stakes increased by 17%.
In a statement released with the figures on the Ladbrokes Coral group website Jim Mullen, chief executive of Ladbrokes Coral, said: “Ladbrokes Coral posted a strong performance in H1 with results in line with our expectations and another significant upgrade to synergies, which at £150m will now be well over double the level initially announced.
“Digital has performed well, with net revenue growth of 17% particularly pleasing against a backdrop of a significant period of platform integration and a competitive trading environment.
“In UK Retail, a key management focus has been on addressing some areas of ongoing inflationary pressure on the cost base and on improving gross win margins.
“On integration, we have successfully migrated our UK Digital brands to a single platform and completed the consolidation of our head office team.”
In light of these largely positive results for the first half of 2017, the group has increased its revenue synergies (.i.e. expected sales in the group, rather than individual companies) from £100m to a revised figure of £150m.
Mullen added: “The further synergies identified re-emphasise the merits of the merger and the potential of the enlarged group, with the additional savings delivered in 2017 offsetting the impact of current UK Retail run rates.
“We therefore remain in line with our expectations for the full year.”