Gala Coral profit up despite new gaming taxes as online earnings shine

UK gambling operator Gala Coral Group posted increased profits in its fiscal Q3 despite the impact of new gaming taxes.

Revenue was up nearly 6% to £305m in the 12 weeks ending July 4, while Group earnings rose 8% to £65.7m. The charge was led by the Group’s digital operations, which reported revenue up 37% to £63.6m, bolstering the company’s claims to have the “fastest growing” online business among its UK-listed peers.

Online earnings rose nearly 28% to £17.1m despite the impact of the UK’s new 15% online point of consumption tax (POCT), which cost the company £6.2m in the quarter. Adjusting the previous year’s Q3 to account for the POCT impact and the 2014 FIFA World Cup boost, online earnings would have risen 202% year-on-year.

The Group’s online operations are divided into three divisions: Coral Interactive, the Gala family websites and the Italian-facing Eurobet site. Coral reported online stakes up 63% and revenue up 69% to £33.2m despite a 1% decline in active customers, as spend per head rose 54%.