Ladbrokes out of Italy for â¬5m.
UK-based betting giant Ladbrokes is selling its Italian retail betting and gaming business to an affiliate of Cogetech for about â¬5.25 million in cash.
Under the terms of the sale, Cogetech, which has more than 38,000 AWPs in 16,000 points of sale throughout the country, will also assume responsibility for approximately â¬18 million of guarantees currently provided by Ladbrokes, in addition to Ladbrokes’ head office in Milan, 82 betting shops and 51 corners, according to a report on the Gaming Intelligence Web site.
Ladbrokes Italian retail business lost â¬9.9 million in 2009, with a carrying value of the business of â¬26.7 million.
Ladbrokes said it decided to exit the Italian retail market last August because revenue growth was below expectations, because of increased competition in the market place, and the high level of further investment required to achieve critical mass. The bookmaker will continue to have a presence in Italy with an increased focus on its online offering, with the company recently becoming the first operator to join Microgaming’s new Italian poker network.