4/12/10 – Whilst most companies have been piling into Italy's burgeoning online gambling market, Ladbrokes was this week extricating itself by selling off its Italian retail betting and gaming business to an affiliate of Italian gaming group Cogetech for about Euro 5.25 million in cash.
The price is subject to adjustment based on the actual net financial position of the business at the time of completion of the sale, and any proceeds will be used to pay down debt.
Part of the agreement is that Cogetech will assume responsibility for about Euro 18 million of guarantees currently provided by Ladbrokes.
Ladbrokes said it took the decision to exit the Italian retail market last August, and that it was motivated by revenue growth being below expectations, increased competition in the market place, and the high level of further investment required to achieve critical mass.
In 2009 Ladbrokes' Italian retail business made a loss of GBP 9.9 million and at 31 December 2009 the carrying value of the business was GBP 26.7 million.