Gala Coral says 100 bingo clubs at risk
Gala Coral says 100 bingo clubs at risk
By Roger Blitz, Leisure Industries Correspondent
Gala Coral grew full-year pre-tax profits by 10.6 per cent, but warned the smoking ban and the removal of lucrative gaming machines had impacted on growth.
The privately-held betting and gaming group said it was cautious about wider market conditions going into 2008 and would press the UK government for the abolition of VAT on bingo products.
Market turmoil hits sale of Tote - Sep-24Gala Coral lays out plan for £5.5bn IPO - May-05Gala Coral pulls off banker double - May-05U-turn means Tote will now be sold at market value - May-05The loss of so-called Section 21 gaming machines and steep rises in casino duty introduced in this year’s Budget have hit bingo and casino operators.
Neil Goulden, chief executive, said though there were some 100 bingo clubs whose survival was at stake across the UK but he did not envisage any Gala Bingo clubs closing.
But he added: “If market conditions worsen, we would have to look at it again.”
Rank announced this week it was scrapping its dividend and cutting back on capital projects, aimed at keeping within its banking covenants.
Owned by Candover, Cinven and Permira, Gala Coral this morning issued its annual report and accounts for the year, saying it was the first major private equity business to comply with recommendations of the Walker committee on transparency.
Turnover for the year to September 29 was £1.3bn, up by £83.2m on 2006, while earnings before income tax, depreciation and amortisation was up £7.2m to £401.8m. Pre-tax profits were up £29.8m to £309.9m.
Ebitda for bingo, where the group has 43 per cent of the market, declined 10.7 per cent to £136.7m, while the Coral business, now comprising 1,550 outlets, was up 21 per cent on the back of 60 new shop purchases and 28 openings.
Gala Casinos ebitda rose 10.7 per cent to £33.2m, although casino duty increases in the Budget cost £2.5m.
Mr Goulden said 2006 had been a “challenging” year.
The group said it would have 360 betting offices in Italy by Easter, and that trading from its international division had seen “above expectation yields”. It has also bought a bingo club in Italy and is on track to open a bingo club in China.
Matthew Roberts, finance director, said the online bingo operation produced £20m of ebitda in 2007. Mr Goulden said the group intended a stronger marketing push of the online product in its bingo clubs.
http://www.ft.com/cms/s/0/2db329ec-aa26-11dc-a779-0000779fd2ac.html
By Roger Blitz, Leisure Industries Correspondent
Gala Coral grew full-year pre-tax profits by 10.6 per cent, but warned the smoking ban and the removal of lucrative gaming machines had impacted on growth.
The privately-held betting and gaming group said it was cautious about wider market conditions going into 2008 and would press the UK government for the abolition of VAT on bingo products.
Market turmoil hits sale of Tote - Sep-24Gala Coral lays out plan for £5.5bn IPO - May-05Gala Coral pulls off banker double - May-05U-turn means Tote will now be sold at market value - May-05The loss of so-called Section 21 gaming machines and steep rises in casino duty introduced in this year’s Budget have hit bingo and casino operators.
Neil Goulden, chief executive, said though there were some 100 bingo clubs whose survival was at stake across the UK but he did not envisage any Gala Bingo clubs closing.
But he added: “If market conditions worsen, we would have to look at it again.”
Rank announced this week it was scrapping its dividend and cutting back on capital projects, aimed at keeping within its banking covenants.
Owned by Candover, Cinven and Permira, Gala Coral this morning issued its annual report and accounts for the year, saying it was the first major private equity business to comply with recommendations of the Walker committee on transparency.
Turnover for the year to September 29 was £1.3bn, up by £83.2m on 2006, while earnings before income tax, depreciation and amortisation was up £7.2m to £401.8m. Pre-tax profits were up £29.8m to £309.9m.
Ebitda for bingo, where the group has 43 per cent of the market, declined 10.7 per cent to £136.7m, while the Coral business, now comprising 1,550 outlets, was up 21 per cent on the back of 60 new shop purchases and 28 openings.
Gala Casinos ebitda rose 10.7 per cent to £33.2m, although casino duty increases in the Budget cost £2.5m.
Mr Goulden said 2006 had been a “challenging” year.
The group said it would have 360 betting offices in Italy by Easter, and that trading from its international division had seen “above expectation yields”. It has also bought a bingo club in Italy and is on track to open a bingo club in China.
Matthew Roberts, finance director, said the online bingo operation produced £20m of ebitda in 2007. Mr Goulden said the group intended a stronger marketing push of the online product in its bingo clubs.
http://www.ft.com/cms/s/0/2db329ec-aa26-11dc-a779-0000779fd2ac.html
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