London Clubs Plc profits drop 95 percent compared to 2003
Wednesday 28th July 2004
London Clubs Plc has reported a 95 percent slump in profits. The UK owner of 11 casinos saw their net income fall to £293,000 in the six months ending on March 28. Last year in the same period income was £5.89 million. The company has paid £6.3 million in refinancing deals regarding its bankrupt US interest- Aladdin Gaming LCC.
Other factors affecting the revenue figures are also the costs and timing implications of relocating on of their venues- The Sportsman casino, as well as a delayed opening of the refurbished 50 St James club.
London Clubs has been investing money into its current venues following the decision by the British Government to further deregulate gambling. Changes prior to this latest decision, already allowed UK casinos to serve alcohol and host live entertainment, did result in great patronage from the british public. However it is currently estimated that 4% of the UK population visit casinos, compared to 25% in the US.
The new legislation recently passed should have a positive effect for the industry though, as it will now enable non-members to visit the sites, allow owners to advertise their venues as well as allowing them to open larger venues in Britain.
After attempting to enter the US market via Aladdin Gaming, the US$1 billion casino London Clubs built filed for bankruptcy in 2001. Investors keen to buy Aladdin are still awaiting being granted a license by Nevada regulators.