Punters’ eyes on Ladbrokes’ merger form

The mega-merger of Ladbrokes and Coral agreed last month will result in a combined entity with a net revenue of �2.1 billion. Picture: SNS

The mega-merger of Ladbrokes and Coral agreed last month will result in a combined entity with a net revenue of �2.1 billion. Picture: SNS

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LADBROKES’ plans for a mega-merger with rival Coral will fall under the spotlight this week when the bookmaker publishes half-year results.

The firms agreed the £2 billion-plus deal last month, though the enlarged group is expected to have to dispose of some stores to satisfy any competition concerns. The proposed move brings together 2,100 betting shops from Ladbrokes and 1,845 from Coral.

The combined entity will have net revenue of £2.1bn and underlying earnings of £392 million, while the tie-up is expected to bring savings of £65m a year.

Analysts at Numis said a lengthy competition probe would likely not see the merger completed until the second half of next year.

They added: “Investors would then have a better idea of what the merged entity might look like post any CMA [Competition and Markets Authority]-required disposals.”

Ladbrokes has also faced a challenge adapting to online and mobile betting, which is the fastest growing part of the UK market.

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