GALA CORAL HAVING A TOUGH TIME
01st February, 2011 at 05:18:58
UK online and land gambling group £188 million in the red
Excessive debt and massive bingo sector write-downs have reportedly resulted in a poor performance from the UK online and land gambling group Gala Coral
This Is Money reports that the group has dived £188 million into the red in its first results after an extensive restructuring. Group sales of £1.2 billion in the year ending September 25, 2010 were achieved, but a £123 million hit due to a revaluation of assets and a further £54 million in restructuring costs meant that operating profit was only £105 million.and that was subsequently wiped out by £306 million in interest costs.
However the 2010 figures are an improvement on the £495 million loss the group suffered in the preceding year.
The Board say that business has been hit most by a reduction in general [consumer] spending, 'be this stake per slip in Coral, spend per head in bingo or drop per head in casinos'.
In a more positive development, the company was successful in achieving a £70 million refund for overpaid VAT on its bingo and slot machines (see previous reports).
Last year the company finally completed a lengthy refinancing which saw its private equity owners wiped out, losing £670 million, and control pass to the company's debt-holders, led by American firm Apollo Management. In the process, Gala
cut its debt by £350 million to £2.2 billion.
The group is understood to be on the short list for purchase of remains of the UK state-owned bookmaker, the Tote
Gala Coral currently operate a number of online gambling products including the flagship Coral bookmaking buisness and Coral Casino
which licences software from IGT. For more information on Coral's online casino, check out the AZOC online casino list
Related News Tags: Bookmakers, Igt, USA, Coral, Gala