The Gala Coral Group begins its Annual Report 2008 with the claim that it is the pre-eminent integrated betting and gaming group in Europe and the only gambling company in the UK with significant businesses in the bookmaking, bingo and casino markets, both on the high street and online. Chairman of the Group John Kelly, who will step down on 1 January 2009 and be replaced by Neil Goulden, states that the Gala Coral brands and commitment of employees has enabled the Group to demonstrate resilience in a challenging market.

This resilience has been unable to prevent a 10% decline in annual earnings but the Group remains confident of meeting 2009 targets. Earnings before interest, tax, depreciation and amortisation fell to £362m, compared with £402m last year. Chief Executive Dominic Harrison commented, “Looking ahead, the principal uncertainties surrounding the Group are the prospects of a further softening in the UK economy and the extension of Government regulation. The restructuring of our divisions and the focus that we have committed to improving efficiencies within the Group give me confidence that we are able not only to manage the business through these challenging and difficult times, but to grow our market share.”

During the last financial year four Gala Casinos and thirteen Gala Bingo clubs have been closed through the combined effects of the smoking ban, taxation, slot machine reduction and the economic downturn. Gala Coral says it has a clear strategy to grow and outperform the market and intends to attract 400,000 new members to its casinos. A new bingo club concept is to trial in 2009 and a new casino in Gibraltar, the Group’s vision for the ‘Casino of the Future’ will open in January.

Following an extensive review of its business, Gala Coral will now be focused in three trading divisions: Gala Gaming (bingo and casinos); Retail Betting (Coral and Eurobet betting shops in Italy); and Remote Gambling (E-Commerce and Telebet). According to Dominic Harrison this will make the Group a more cohesive entity, prepare the business for dealing with the economic downturn and position it to take advantage of the eventual economic upturn. (E-12.09.08)

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