British-based online and land-based betting operator has reported large pre-tax revenue losses, despite its record turn over in 2013.
Gala Coral own a number of betting shops in the UK and abroad, along with a number of online casinos and online sportsbooks in the UK.
Even though the company enjoyed a record-breaking turnover of GBP 1.1 billion for the period in 2013, breaking its prior record figure of GBP1.06 billion, the Gala Coral group has also suffered a pre-tax loss of GBP206 million.
The high taxation under UK gambling laws caused the company a GBP59 million loss in its VAT claim, which along with the interest payments on its GBP2.1 billion debt and a GBP 60 million writedown on the sale of a number of casinos added to the loss.
Gala Coral struggles with revenue losses, despite record turnover
The Coral group saw a 9% drop in earnings prior to interest, tax, amortization and depreciation in 2013, although the damage goes back much further.
In fact, Gala Coral began a restructuring process back in 2010 when it saw its three private equity owners bankrupted by their over GBP2.5 million dept. After which, the ownership was pass over to a group of private equity firms Cerberus Capital and Apollo.
Right now the group is looking to make cut backs, and wants to break itself up by selling of sections of its business. At the moment, Gala Coral are trying to find a buyer for its Gala Bingo operation.