A brief look at press coverage on the Bingo industry, over the last half year, sees a lot of the limelight directed upon Gala Bingo’s dwindling fortunes. Their performance seems even more disconcerting, when looking at in the context of Rank Group’s (Mecca Bingo’s parent company) improved earnings; for the three months ending on 4th October 2009. So, just what is Gala Coral-Gala Bingo’s parent company doing so different? Well, there are a number of things that come to mind. However, many of them are of no direct result of the company’s actions or, lack of them! These extraneous factors include a drastic decline in attendance, especially in more ‘up market’ areas. Matters seem to have been further exacerbated, by the huge growth of online Bingo. As well as the crippling effects of economic recession. This has pushed more and more people to cheaper alternatives, on just about everything.
Mecca Bingo appear to have successfully navigated this minefield, rather successfully. More and more people are turning toward online Bingo. On average, players are spending more during their online sessions, compared to the same period last year. And, despite the woes bedevilling Gala Coral, Mecca Bingo is not the only success story in this industry. The bookmaking arm of gambling house Ladbrokes PLC who, in the wake of a £1 Billion burden of accumulated debt, had their shareholders express a vote of confidence; by injecting over £270 million to punch a significant dent in the debt burden.
So what next for Gala Coral? As with most firms when experiencing a downward spiral, the Chairman may be under increased pressure to step aside. Former Chair, John Kelly, is tipped as one of the strongest contenders to take over. Gala Coral, however, are keeping all their cards to their chest, and making every effort to counter any such speculation. The debt-to-equity swap may just be what will pull the company out of its present morass.
Even so, for now, Mecca Bingo’s parent company, Rank Group, can continue to bask in the marginal, but significant turn of events. Even though, they are not entirely out of the woods yet. For the future, the company is betting on new gaming machines, and the “Full House” concept, to maintain an upward trend. Let’s hope the odds are going to work out in their favour!
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