Davy Research

Gaming

Slowdown in Europe online, but full year guidance unchanged due to faster synergy delivery
Gaming

DAVY VIEW

Ladbrokes Coral has reiterated guidance for 2017 (Davy forecast EBIT: £313m) despite a slowdown in European sportsbook growth in the last ten weeks. Sportsbook net revenue growth, which had been up 29% in the first seven weeks of the half, has slowed to a run-rate of closer to 10%. That said, OTC staking trends and gaming growth have both improved, while synergy delivery this year is also running £5-6m ahead of expectations. This means that our full year expectation is likely to be met. It may, however, mean that we reduce our 2018 forecast by circa 2.5%. Our overall view remains unchanged. We see good scope for the stock to perform well post regulatory review.

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Gaming

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