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Posted 2/1/11 : UK online and land gambling group GBP188 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 GBP188 million into the red in its first results after an extensive restructuring. Group sales of GBP1.2 billion in the year ending September 25, 2010 were achieved, but a GBP123 million hit due to a revaluation of assets and a further GBP54 million in restructuring costs meant that operating profit was only GBP105 million…and that was
subsequently wiped out by GBP306 million in interest costs.
However the 2010 figures are an improvement on the GBP495 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 GBP70 million refund for overpaid VAT on its bingo and slot machines (see previous InfoPowa reports).
Last year the company finally completed a lengthy refinancing which saw its private equity owners wiped out, losing GBP670 million, and control pass to the company's debt-holders, led by American firm Apollo Management. In the process, Gala cut its debt by GBP350 million to GBP2.2 billion.
The group is understood to be on the short list for purchase of remains of the UK state-owned bookmaker, the Tote.

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Team Hot Launches - #teamhot The Philippines licensed and GGNetwork-powered online poker operator Natural8 has announced the appointment to its "Team Hot" professional player line-up of Asian poker aces Kitty Kuo, Xuan Liu and Dong Kim.

Netent Q3-2016 Earnings Report - #netent The UK continues to be an important growth driver but the weaker pound had an estimated negative effect of about three percentage points on revenue growth compared to the same quarter last year.

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