Casinos Austria International in Crisis

Published: March 1, 2011; 01:00 · (Vindobona)

The foreign holdings of Casinos Austria International pose major problems for the group, as losses continue.

Casinos Austria International in Crisis / Picture: © Vindobona.org

The foreign holding of Casinos Austria remains unprofitable. The first half of 2010 brought losses of € 14m; for the whole year, a total losses of € 40m is expected. The company has announced that the loss will be somewhat lower.

However, the Executive Board has already been instructed by the Supervisory Board to develop a restructuring plan. No details are known yet. The Supervisory Board still seems to be nervous: two extraordinary sessions were convened within four weeks. The next regular meeting will be held in late March. On this occasion, the restructuring plans are to be presented.

The riots in Egypt added to this situation, as they caused heavy losses to the local branch. The situation seems to have calmed down a little by now.

The consequences are not foreseeable yet. A premature departure of the Executive Board has been initially dispensed with. The Supervisory Board has shown caution up to now. A sale of individual holdings of the foreign subsidiary Casinos Austria International is a possibility, a minority owner is also feasible. But a complete sale is not to be excluded either.

Opinions about how to proceed are still contradictory. The possibility of making foreign investments more profitable, making the most of the already emerging economic recovery is also considered an alternative. The first two months of 2011 are said to have had quite good results. The search for a partner has already failed once: 49% of the holding company was available last year.

CAI has 38 locations in 17 countries as well as several facilities on cruise ships.

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