Gala Coral Suffers Major Financial Woes

9 December 2008

Gala Coral Group, the owner of more than 150 bingo halls in the United Kingdom along with about 30 casinos and 1,600 sports betting shops, could be in major financial trouble, according to The Guardian.

The newspaper reported that even though £124 million was added to the company’s cash flow, Gala Coral has amassed £4.4 billion in debt. Moreover, the company posted a pre-tax loss of £397 million for the year ending Sept. 27.

Other highlights from the results, released on Monday, included a decrease in turnover by 3 percent and its earnings before taxes, depreciation and amortization decreased by 10 percent

“Last year was challenging for Gala Coral due to well tracked regulatory and economic impacts,” Dominic Harrison, Gala Coral’s chief executive, said in the report. “As the economic outlook remains uncertain, we have responded with intelligent cost management and an internal restructuring to make sure we are as efficient as possible to cope with these challenges.”