Gala Coral’s casino business – soon to be sold to the Rank Group – saw profits increase significantly in the second quarter of the year.
In the 12 weeks to April 7, the UK-based gaming and leisure group recorded a seven per cent year-on-year increase in casino gross profits to £27.3m. Turnover for the quarter increased by four per cent to £31.8m, driven largely by improvements in gaming income.
Gala Casinos has chosen to focus on higher value players in recent months and, although the second quarter saw a fall in admissions, the business benefitted from an improvement in gaming drop per head of 11 per cent and a gaming win margin of 17 per cent.
Gala Coral announced in May that it is planning to sell Gala Casinos to Rank in a deal worth £205m. The transaction is due to be completed in September.
Overall, Gala Coral’s turnover increased three per cent to £284.4m, with gross profit growth of four per cent to £220.6m
“The trading environment for leisure and retail businesses remains difficult but within this context all of our businesses have delivered gross profit growth in the quarter, with growth over the first half standing at five per cent,” said Carl Leaver, CEO of Gala Coral. “Following the end of the quarter we announced the proposed sale out casino division to Rank in a deal that will deliver excellent value for our shareholders and debt investors.”
