 saw operating profits rise 22 percent in 2016, boosted by growth in its online and European businesses.){kind=link}
Betting giant Ladbrokes Coral (LON:LCL) saw operating profits rise 22 percent in 2016, boosted by growth in its online and European businesses.
The bookmaker, formed following a £2.3 billion merger between Ladbrokes and Coral last year, reported a rise in profits to £264.3 million ($331.5 million). Group revenues revenues rose 11 percent to £2.35 billion, lifted by strong performance across its digital and European retail businesses.
Ladbrokes Coral CEO Jim Mullen commented on the promising figures: “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.”
He added that “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.”
Nevertheless, last year’s merger reportedly cost the group a pre-tax loss of £204.3 million last year. However, the group remained upbeat about future outlook, ultimately envisaging higher “cost synergies” as a result of the merger. The group anticipates annual savings to more than double from £35 million in 2017, to £90 million in 2018 and a further £100 million in 2019, respectively.
Last year, the company had agreed to the sale of 359 shops and betting locations across the country to facilitate the completion of the landmark merger. In order to comply with regulators, Ladbrokes agreed to offload 185 of its stores, with Coral selling the remaining 174.
The £55.5 million raised from the deal was then used to pay existing debts. Despite the move, the merged company has since become Britain’s largest high-street bookmaker owning an estimated 3,700 betting locations.
Despite a promising start to 2017, shares in the company fell in early Tuesday morning trading over concerns regarding the merger related hit to profits.
Shares in Ladbrokes Coral are currently down marginally by 1.63 percent at 9.56AM (GMT).