Betting Business Bulletin 30 July 2017

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Ladbrokes Coral deal goes down well in City

Ladbrokes Coral shares rose last week as the bookmaker issued a trading update which went down well in the City.

A weak performance from the company’s retail sector was one of the features of the update, but it was offset by a better performance from digital betting while synergies from the merger of the two brands have increased to £150 million from £100m.

Chief executive Jim Mullen said: “I’m comfortable and happy with a strong overall performance.

“I think you have to look at this one in the round, and overall we’re in a good place with some of the planned and considered approaches we took.”

The end of the football season had been “tough” according to Mullen, who said the amount of winning favourites had gone in punters’ favour.

He added: “It went the customers’ way but we’re seeing our sportsbook stakes in digital are up 23 per cent versus last year so we’re seeing the stakes going back in. We must be doing something right on product proposition.”

Digital net revenue for the first half of the year was 17 per cent ahead of 2016 while sports betting revenue in that division was up 25 per cent.

However, in the company’s retail estate net revenue was six per cent behind last year with over-the-counter net revenue 11 per cent down and gaming machine net revenue one per cent lower.

Over-the-counter stakes were seven per cent down, which the company said had been impacted by changes to gross win margin in Ladbrokes shops and not having TRP.

Mullen said they were seeing nothing in retail “that is surprise to us” and that the company had taken a “planned and considered approach” to the estate.

Analyst Gavin Kelleher of Goodbody said the update should be well received.

He added: “While the performance in UK retail is weak, this is being offset by strong growth in digital and the increased cost synergy delivery.”

The bookmaker’s share price closed at 126.70p, up 7.7p or 6.47 per cent, on Thursday and ended the week at 126.80p.

William Hill are due to unveil their interim results on Wednesday while Australian giant Tabcorp’s full-year results are released on Friday.

TRP seal Betfred deal

Mullen described the deal Ladbrokes Coral signed with betting shop channel The Racing Partnership recently as “sensible and sustainable” and more good news for TRP followed last week.

Betfred’s 1,668 betting shops in the UK can now show racing from all 15 Arena Racing Company-owned racecourses and seven independent tracks, as well as South African racing, thanks to a new media rights deal.

Arena Racing Company is the driving force behind TRP and their chief executive Martin Cruddace, said: “We are really pleased to have agreed this deal with Betfred.

“Under Fred Done’s leadership Betfred and the Tote have been a significant supporter of British racing and it is important to us that Betfred shops can show TRP’s extensive content.

“We can now look forward to working with Fred and his team in a collaborative manner which allows us all to help promote and grow betting on British racing.”

Giving his reaction to the news, Betfred retail and Totepool UK managing director Mark Stebbings said: “We are delighted to have completed a deal with The Racing Partnership and once again we are now able to show horseracing from all British racecourses to our customers.”

Gray to take helm at BoyleSports

John Boyle has chosen his successor as chief executive of Ireland’s largest independent bookmaker with son-in-law Conor Gray taking over at the helm.

Gray has been with BoyleSports for 16 years, having joined the company’s branch in Baggot Road, Dublin, as a trainee cashier in 2001.

Two years later he moved to the information and media department at BoyleSports’ headquarters in Dundalk, County Louth, and for the next decade held executive roles in a number of departments including IT, trading and digital.

After a spell in Asia overseeing relationship development work, he returned to head office in 2014 as chief operating officer.

Boyle said: “After 35 years building BoyleSports from one shop into Ireland’s largest independent bookmaker, it would not be possible to step back if I were not confident I was handing the reins to the right person.

“In Conor I am confident I have a successor who can bring not only experience and expertise, but also a passion for all things related to bookmaking in general and BoyleSports in particular.”

Boyle, who opened his first betting shop in 1982, took over as chief executive for a second time in 2012 and is set to stay on as chairman.

Record for Kindred Group

Kindred Group, the parent company of Unibet, Stan James and 32Red among others, unveiled record gross revenue for the first half of the year last week.

Gross revenue of £319.8 million was up 28.4 per cent on the previous year, while ebitda (earnings before interest, depreciation and amortisation) rose 23 per cent to £59.9m and profit before tax by 8.4 per cent to £41.1m

Chief executive Henrik Tjärnström said: “Taking into consideration the lack of major tournaments this year, we are confident that we have continued to outpace market growth and have continued to take market share.”

Kindred completed the acquisition of 32Red in June and Tjärnström added: “The acquisition of 32Red will significantly accelerate our development and profitability in the world’s largest locally regulated market.”[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][bsf-info-box icon=”Defaults-envelope-o” icon_size=”32″ pos=”left”]For more information about Racing Post’s B2B services, contact us or browse more of b2b.racingpost.com.[/bsf-info-box][vc_column_text]Racing Post B2B caters for all digital content requirements across web, mobile, tablet and retail. But we are more than just a data provider – we enhance raw data with the best and most recognisable content authored by the biggest names in sports betting. Racing Post B2B offers an unrivalled worldwide content portfolio for bookmakers and media associations. Acknowledged throughout the racing and gaming industries, the Racing Post creates bespoke products suited to your audience that will enable your company to maximise profitability by offering unique data, editorial or multi-media solutions.[/vc_column_text][/vc_column][/vc_row]