Gala Coral Has Rough Fourth Quarter

UK based wagering company Gala Coral has released its fourth quarter financial results, showing mediocre results amid declining turnover.

Financial highlights for the quarter were:

• Turnover down 3% over the same period last year to £249 million.

• Pre-exceptional earnings before tax, interest, depreciation, and amortization down £14.7 million from the same period last year to £55 million

• Cashflow of £230.1 million for the twelve months ending September 30th.

• 88% cash conversion rate with a cash outflow of £118.7 million.

• Net repayment of £190.1 million in senior debt.

• Refinancing costs of £41 million.

• Net debt of £1.323 billion.

A statement released by Gala Coral read:

“The main drivers of the underlying earnings before interest, tax, depreciation and amortisation reduction were poor over-the-counter performance and increased costs in Coral and a decline in remote (gambling),”

“The second half of the year saw a return to growth in over-the-counter stakes although margins have remained below the long-term average. Cost increases in the Coral business were primarily driven by estate growth and property and content costs."

“Remote (gambling) remains limited by uncompetitive technology although trends in active customers were materially improved in the second half."

"The project to re-platform all websites onto Playtech software is well progressed with a re-launch of the new sites planned for spring and summer of 2012.”