INTERVIEW PER WIDERSTRÖM
of view, we need to regain market share in the UK, which we are doing. eGR: Where does Gala currently stand in the UK market? PW: There are different ways to source the underlying data, particularly when you look at bingo where there are a number of operators that aren’t listed so the data isn’t readily available – I wouldn’t quote market share. If you look at online bingo in the UK we’re in the top three. Our ambition is to grow faster than the market and to regain market share and pro?table market share in the UK to start with. eGR: Do you have plans to focus outside the UK at any stage? PW: We’re not excluding the possibility of – when we have got the proper traction in the UK – looking beyond the UK to international markets. eGR: With the same brand? PW: Gala as a brand is one that works across several territories, it has a natural meaning so when going internationally in a selected fashion, Gala as a brand would work. At the same time, we don’t have a brand presence currently but Gala as a name could work. We are primarily UK focused… would it work in Italy, Spain? Gala means a lot in many countries. When it comes to markets we’re going to focus on, we have a plan. We’re determined to turn the brand around. We are also working towards an internal timetable and I wouldn’t give anything away aside from the fact that it’s part of our growth plan; regulated markets are on the map as well as dot.com markets where we can add value to other territories, not just as a pure bingo proposition. It comes back to how you look at how you acquire players into online gaming, real money in particular. Sports is a fantastic vertical to acquire into, poker used to be. When it comes in bingo it is a great vertical to acquire into, you cross-sell across the different verticals. Would we go with a bingocentric brand? Not necessarily, but bingo is a very important part of our expansion strategy. eGR: Why did you not merge both brands into one? They are separate brands today but was there not a case to do that at some stage? PW: It comes back to the ultimate plan from a shareholding perspective that we have a Gala proposition and a Coral proposition.
“Gala as a brand is one that works across several territories, it has a natural meaning”
Per Widerström on expansive plans
eGR: Are they not the same ultimately? PW: Not really. Sports is the major divider. You have Coral which has sportsbook DNA and retail, and Gala which is casino and bingo and land-based. We have a sports-centric brand and you have another bingo/games-centric brand. It has never been the plan or intention to merge them. We believe we can build and grow the brands separately and that makes sense from a shareholder perspective. eGR: What’s the crossover between the two? How many players are loyal to both brands? PW: I have seen some of those stats but that was before going live, which is not comparable. In light of the fact that both businesses have just been launched, it is too early to say but there is not as much as one would expect because they have been marketed separately and that is what we intend to do. There are some potential synergies but we see them as completely standalone business units. eGR: How do you work alongside John O’Reilly and how often do you share information? PW: Not necessarily day-to-day. We worked intensively together on the pre-launch of both brands on the new platforms and we were part of the same project. There was a lot of learnings to share across the two divisions. That is still happening but now that we are both trading we are two separate legal entities under the same owners, but we have less to do with each other. eGR: What are the ultimate ambitions of private equity owners Candover Investments, Cinven and Permira? PW: Like any shareholder they want to see a drive in value… at what point do they make an exit? I think the mission we have is to follow the business strategy and our three-year plan [to start with]. We have some aggressive growth targets. The initial expectation is that we deliver that then it’s up to the shareholders how they view [our progress]. The three-year plan means we have done a three-year business plan. If we look at that it kicked in from when we started trading in the summer of last year. This summer, one year on from launch we’ll reenergise that three-year plan so it’s a rolling plan. eGR: What do you see as the main threats to your three-year plan? What are the biggest obstacles that stand in your path? PW: You always have the competitive landscape
“We believe we can build and grow the brands separately and that makes sense from a shareholder perspective”
Per Widerström on Gala and Coral
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