Gala Coral seeks to expand to China
Gala Coral, the private equity owned betting and gaming group, is seeking permission to open a bingo club in China as it steps up its international expansion.
Neil Goulden, chief executive, said the group had found a site for the club in Hebei province, as it sought to establish a foothold in a potentially huge gambling market. "We have provincial approval to open a bingo club. We are now waiting for Beijing approval," he said. "I also see a tremendous opportunity for online and TV bingo in China."
He was speaking as the company, which is owned by Candover, Cinven, Permira and management, became the first major private equity backed group to publish a detailed annual report. Its disclosure levels exceeded the Walker recommendations.
advertisementPre-exceptional earnings before interest, tax, depreciation and amortisation rose £7.2m to £402m on sales £83.2m higher at £1.31bn.
Mr Goulden said international expansion, which currently encompasses 219 betting shops in Italy and a newly opened bingo club there, could determine the future ownership of the group, which is backed by broadly £1bn of equity and £3bn of debt.
"Given the size of the group and its international expansion desires, I do believe a flotation is the right thing to do," Mr Goulden said. "The only other route that would appeal to management is an international tie-up. But, whatever happens, its at least two years away."
The only black spot on the numbers was bingo, where underlying earnings fell £16.4m to £137m.
Mr Goulden said: "Our bingo performance is trading in line with Rank," where admissions are down 15pc in the last 14 weeks.
Earnings from bookmaker Coral rose by £33.6m to £194m, while Galas 30 casinos raised earnings from £30m to £33.2m. No dividends were paid.
2007-12-21
