REMOTE GAMBLING AFFECTS GALA CORAL PERFORMANCE
12/20/11 : Uncompetitive technology being addressed
Gala Coral Group has reported encouraging trends carrying through into the start of its 2012 financial year on the back of posting disappointing fourth quarter and full 2011 year results across most divisions, this week.
Key Performance Indicators – Full Year ended September 24, 2011 include:
– Turnover of GBP 1,117.0 million, 2 percent below last year excluding the 2010 World Cup and the accounting effect of the removal of prize bingo (which has no gross profit impact)
– Group EBITDA (pre-exceptionals) of GBP 261.0 million, 8 percent lower year on year on an underlying basis
– Unlevered cashflow of GBP 230.1 million
– Cash outflow of GBP 118.7 million, includes net repayment of GBP 190.1 million of senior debt and refinancing costs of GBP 41.0 million
– Year-end net debt of GBP 1,323.0 million for covenant purposes.
The company cites a poor over the counter (OTC) performance, increased costs in Coral and a decline in remote gambling as the main drivers negatively affecting its performance over the period.
One of Gala’s identified key growth areas in remote gambling remains severely limited by uncompetitive technology, however, the company's project to re-platform its websites on Playtech software is reported to be progressing well with new site launches planned from the second quarter in 2012.
A company statement on Gala's current trading position remains positive with Management confident of a return to year on year growth in Quarters 2 and 3, 2012.