Firm disposes of shops, pays off debt
British bookie Gala Coral reported a 10 percent revenue increase in the third quarter thanks to action from the Euro 2016 football championships. But despite pulling in £264 million (US$350 million) for the period, it also incurred £26 million in “exceptional costs” that left it in the red, reported the Financial Times. Gala posted a loss of £25.6 million compared to £20.5 million in the same period in 2015.
The company, which is preparing to merge with Ladbrokes in a £2.2 billion (US$2.9 billion) deal, incurred impairment costs on closed stores and early repayment of debts, in addition to costs directly related to the Ladbrokes deal.
The Times reported that the UK bookie has been year-to-date online revenue grow 19 percent, but could have realized 28 percent growth in the segment if not for “teething problems” around new regulations to curb problem gambling.
Ladbrokes and Gala must sell up to 400 high street betting shops before completing the merger, which will create the UK’s largest bookmaker by number of shops. Gala said the selloff is “well under way.”
