Gala Coral Group lost nearly £50m in its fiscal H1 despite online sports betting revenue more than doubling year-on-year.

On Wednesday, Gala Coral reported a net loss of £49.8m in the 28 weeks to April 9, a significant turnaround from the £103.4m profit reported in the same period a year ago, although that figure was artificially goosed by the sale of its retail bingo operations.

The company blamed the shortfall on paying down debt, new taxes and increased costs, including those associated with the company’s imminent merger with rival Ladbrokes and training retail staff on new consumer protections and anti-money laundering measures.

Overall revenue was up 13% to £605m, with most of the gains coming online. While Coral retail revenue improved 4.3% to £382m and the continental Eurobet retail division was up 29% to £54.9m, Gala Coral’s online operations surged 45% to £166.2m.