UK-listed gambling operator Gala Coral Group lost over £25m in its final quarterly results before its merger with rival Ladbrokes, largely due to increased taxes and one-off items.
In the 12 weeks ending July 2, Gala Coral revenue improved 10% to £264m and earnings rose 13% to £57.7m but the company lost £25.6m due to exceptional items.
These one-off costs included impairment charges from closed retail shops, early repayment of debt and £12.6m associated with the Ladbrokes merger. But the company was also laid low by a killer combo of recent tax hikes and regulatory restrictions.
Gala Coral said that absent these regulatory requirements, including “teething problems” implementing new online player protection rules, revenue would have risen 28%. For the fiscal year to date, incremental tax costs totaled £22.1m while new fixed-odds betting terminal staking restrictions shaved a further £7.2m off YTD earnings.