Gala Coral swings to loss amid Ladbrokes merger review

8th Jun 2016 11:16

(ShareCast News) - Bookmaker Gala Coral Group swung to a loss in the first half of the year, it reported on Wednesday, posting a loss of £49.8m in the face of rising revenues.The firm, in the midst of a merger with FTSE 250 rival Ladbrokes, made a profit of £103.4m in the same period last year.In the release, the company made every effort to divert attention to the more positive EBITDA figure, which showed a 16% rise in earnings.Once the costs of regulation were taken into account, Gala Coral claimed an EBITDA increase of 43%.The loss was blamed on the Cheltenham festival, which Gala Coral described as the worst since 2003, as well a 67% jump in operating expenses to £318.8m.Salary increases, and the cost of training staff the ins and outs of spotting problem gamblers and new anti-money laundering regulations were the reasons given for the jump in expenses.Total revenues rose 13% to £606m, the company said.Shares in Ladbrokes slipped 0.9% on the news, as investors aired their disappointment at the results.The Competition and Markets Authority is currently reviewing the proposed merger, and indicated last month that a combined entity might need to offload 400 betting shops before the deal can be completed.