Ladbrokes Leaves Italy
12th April, 2010
An article which can be found at eGaming Review has revealed that Ladbrokes is to sell its loss making chain of Italian betting shops to Cogetech for €5.25m who are an Italian gaming and betting affiliate business.
The €5.25m price tag is at an 83% discount to the business’ quoted carrying value of €30.3m (£26.7m) on 31st December 2009. The Italian company will assume responsibility for around €18m of guarantees which are currently provided by Ladbrokes.
The sale is following the appointment of Richard Glynn at Ladbrokes last month who is keen to focus on generating further growth from the company’s online division. Cogetech now own all of Ladbrokes’ Italian retail estate which includes 82 shops and 51 corners plus head office which is based in Milan.
Ladbrokes announced its exit from land based betting in Italy during its first half results in August 2009 due to lower than expected revenue growth, illegal shops, increased competition and the high level of investment needed to achieve critical mass.
Ladbrokes’ withdrawal from the market comes shortly after rivals William Hill left in 2008 selling to Intralot for €5.5m.
By Faye
