Ladbrokes Coral published final results for year 2016 

Ladbrokes Coral Group plc (LSE: LCL) has today issued a press release to publish its Final results for the year ended 31 December 2016.

According the press release, Ladbrokers Coral published the below results;

Merger successfully completed and good momentum in the business

Financial highlights:

·      Proforma Group revenue⁽²⁾ of £2,351.9m, up 11% driven by strong growth in Digital and European Retail

·      Proforma Group EBITDA⁽²⁾ of £380.7m, up 14%

·      Proforma Group operating profit^(2)/(4) of £264.3m, up 22%; Digital operating profit +125%, European Retail operating profit +219%⁽⁶⁾

·      This result is in-line with the profit range reported in the 18 January 2017 trading statement (£275m to £285m) after adjusting for disposed shops (+£22.0m) and the change in treatment of amortisation of acquired intangibles (-£3.6m)

·      Reported Group operating loss⁽¹⁾ of £202.4m is stated after charging non trading items of £323.6m which includes a £194.9m non-cash impairment charge and £128.7m relating primarily to other merger and integration related costs

·      Underlying EPS of 6.6p, reflects a 10% increase on 2015 after adjusting for a prior year one-off tax credit

·      Full year dividend of 3p (1p interim and 2p final)

·      Net Debt of £1,089.5m, 2.86x proforma EBITDA

Integration update:

·      Cost synergy guidance upgraded from £65m to £100m. Revenue synergy opportunity still being assessed

·      Integration progressing well, with senior teams appointed and ongoing preparation for the imminent transition to one Digital platform

Commenting on the results, Ladbrokes Coral CEO Jim Mullen said:

“This is a very successful start for the Ladbrokes Coral Group.  Both Ladbrokes and Coral entered the merger in November with good momentum, and together delivered a strong full year financial performance.

As a management team we are now looking to the future. We are focussed on delivering on the full potential of the merger through the strengths of the Ladbrokes Coral brands, enhanced scale, operational efficiencies and leveraging the best of both businesses.

Our plan is simple. We are focussed on building on the leading multi-channel experience developed by both brands, utilising a rigorous approach to data driven marketing and ensuring that our product delivers a leading customer experience.  We will look to leverage our existing experience in international markets to drive further growth and use our significantly increased scale in technology to develop new products and deploy across the enlarged Group. We will deliver this with a firm commitment to responsible gambling and health and safety.

The merger was the start of a journey.  While we face some short term uncertainty with the triennial review, the scale, talent and agility we have in this business represent real strengths going forward. We intend to use these strengths to establish Ladbrokes Coral as both the leading, and the best, betting and gaming business.” 

Notes:

(1) 2016 reported results include results from continuing operations for Ladbrokes PLC for the 10 months to 31 October 2016 and results for Ladbrokes Coral Group plc for the 2 months to 31 December 2016. 2015 reported results include results for Ladbrokes PLC only for the 12 months to 31 December 2015. Both 2016 and 2015 include results from the 360 shops that Ladbrokes Coral Group plc was required to sell as part of the CMA’s remedy findings into the merger of Ladbrokes PLC and the Coral Group, that were mostly still held at the end of December 2016.
(2) 2016 proforma results include results for both Ladbrokes PLC and the Coral Group for the 10 months to 31 October 2016 and results for Ladbrokes Coral Group plc for the 2 months to 31 December 2016. 2015 proforma results include results for both Ladbrokes plc and the Coral Group for the 12 months to 31 December 2015. Both 2016 and 2015 exclude all results from the 360 shops that Ladbrokes Coral Group plc was required to sell as part of the CMA’s remedy findings into the merger of Ladbrokes PLC and the Coral Group. These results are presented unaudited
(3) Stated pre non-trading items (see page 31)
(4) Proforma Group operating profit is stated pre non-trading items (see page 31)
(5) Underlying earnings per share are for continuing operations before non-trading items. The 2015 EPS has been represented for the change in treatment of amortisation on acquired intangible assets as disclosed on the Consolidated Income Statement
(6) Constant currency basis. Growth on a constant currency basis is calculated by translating both current and prior year performance at the average 2016 exchange rates

Source: Ladbrokes Coral

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