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%.