Byline: Sarah Bridge
Jul. 18--Betting shop operator and internet gaming chain Coral Eurobet has slumped into the red in its first year under new ownership.
The bookmaker, bought by private equity outfit Charterhouse Development Capital last year, made an operating profit of UKpound 84.9 million on a turnover of UKpound 3.8 billion for 2003, according to accounts filed at Companies House.
But interest charges of UKpound 92 million meant Coral posted a pre-tax loss of UKpound 7.1 million for the year to September 28.
Over the long term, Charterhouse is gambling on a betting boom with the rise of popular fixed odds betting terminals and the planned deregulation in the licensing laws.
Like rivals William Hill and Ladbrokes, the company is installing the terminals, which allow people to play virtual roulette, in its 1,100 shops.
But in the short term, Coral is saddled with huge debts -- a legacy of the hefty UKpound 860 million Charterhouse paid Morgan Grenfell Private Equity for the company last year. Four years previously, Coral changed hands for only UKpound 390 million.
The borrowings of UKpound 852 million were refinanced in February, cutting interest payments by UKpound 23 million a year. Coral may list on the London Stock Exchange later this year with a price of about UKpound 1.3 billion.
DIY retailer Focus Wickes made a pre-tax loss of UKpound 35.1 million in the year to October 26.
UKpound preceding a numeral refers to the United Kingdom's pound sterling.
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TICKER SYMBOL(S): WMH, LDBKF, LDBKY
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