Gala Coral ramps up bingo hall sale proceedings
UK gambling firm confirms it is exploring a possible sale of its 135 bingo halls following press reports
Gala Coral has confirmed the company is exploring a possible sell-off of its 135 UK bingo halls after reportedly hiring financial advisory firm Lazard to conduct a sale.
The UK gambling firm confirmed its intentions to pursue a sale after the company was buoyed by UK Chancellor of the Exchequer George Osborne’s decision to halve bingo duty to 10%.
“Management’s strategy of reinvigorating the core value proposition, innovating through the use of technology and improving efficiency has positioned the business well for the future,” Carl Leaver, Group CEO of Gala Coral Group, said.
“Additionally, the recent halving of bingo duty to 10% and the more favourable consumer environment makes Gala Bingo an attractive investment opportunity,” he added.
It is unknown what impact a sale will have on its online division which recently began diversifying its product offering after launching sports betting and lottery products.
However, Bede Gaming chairman Joe Saumarez Smith told eGaming Review that a sale of the bingo halls would come at the right time for Gala Coral.
“They seem to be exploring all options for the business and before interest rates go up they will probably be looking for a resolution to their debt,” he said.
“The change of bingo taxation has given a pretty good boost to the value of the bingo halls and it’s a good time to sell before the Point of Consumption tax comes in as no one knows how it will impact the whole of the industry,” Saumarez Smith added.
The news follows a strong Q2 for Gala Coral after profits from its online division more than doubled during the quarter.
EBITDA derived from its Coral.co.uk, Eurobet.it, Galabingo.com and Galacasino.com sites reached £11.4m during the 12 weeks ended 12 April, an increase of 138% on the £4.8m recorded during the comparative period in 2013.