Gala Coral to Sell off its Bingo Business
From the outside in, it may appear that all is rosy in the garden of Gala Coral, with Q3 profits of £193.9m beaming out of its fiscal reports. However, looking at the latest bingo news and taking the view from the inside gives you a totally different picture.
Profits for the Gala Bingo portion of the business sunk £4.9m to £47.8m, and earnings fell £3.1m to £11.9m as the beautiful British weather was blamed for the drop in profits.
At its peak, Gala Bingo was the proud owner of 174 land-based bingo halls in the UK. That number has been in steady decline since 2007, and they now own a reported 144, and yet it still represents 21% of all land-based bingo halls in the UK.
Reports suggest that Gala Bingo has a player database that creeps over the 5m-mark, and yet only 1.2m of them are currently active.
So what does this all mean?
Reports from the city suggest that Gala Coral have reached out to a series of investment bankers with a view to operating a strategic review of the business
Goldman Sachs appears to be at the head of a cue that contains the likes of Credit Suisse, Morgan Stanley, Deutsche Bank and Rothschild.