Davy Research

Ladbrokes Coral Group plc

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

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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  • RATINGS AND PRICE CORRECT AT TIME OF ISSUE


  • Ladbrokes Coral Group plc

    Closing Price: 13690p

  • RATING 18/04/17

  • PREVIOUS RATING 28/07/15

    Neutral

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