Supplier News

France – Besancon acquisition demonstrates Joa’s revival

By Phil - 11 November 2015

Having reduced its debt; Joa, the third biggest casino group in France, has demonstrated it has the financial muscle to grow again with the purchase of the casino in Besancon, in Eastern France.

The casino, bought for an undisclosed sum from Lucien Barrière group, lies in 62nd place in terms of France’s best performing casinos. Joa will invest €1.5m over the next two years to renovate the building and improve the casino’s offer. It takes Joa’s total number of casino properties to 21 although that figure will rise again with the opening of another in December in La Seyne-sur-Mer near Toulon, which has cost €20m to build.

Laurent Lassiaz, CEO of Joa, said: “We are preparing to acquire another big casino next year.”
The CEO said he was delighted that the group had emerged from the difficult period from 2008 to 2014, citing the introduction of electronic roulette as a major reason why things have improved.

“We achieved a turnover of €200m in 2014, up 8.6 per cent and our EBITDA reached 28.5m against 24.8m the previous year,” he explained.

The downturn saw Joa’s investors; English hedge fund Bridgepoint, who owned 65 per cent of the group, and Loto-Québec, who owned 35 per cent, lose huge amounts of money due to the amounts they were repaying in loans to finance the acquisition back in 2006.

EBITDA had increased to €50m in 2007 but subsequently fell to €21m in 2013.

Mr. Lassiaz explained that Joa could pay back this debt but no longer had the means to develop.
Since then creditors such as the English investment fund Alchemy and US fund Davidson Kempner have transformed their debt into shares. In return, shareholders Bridgepoint and Loto-Québec have lost a lot although the group’s debt has been reduced to €120m from €300m previously.

Bridgepoint and Loto-Québec remain the outright owners of casinos in Seyne-sur-Mer and Lac du Der in Marne and are guaranteed a large chunk back should Joa be sold for more than €120m. Joa expects to generate revenues of €218m in 2016.

The sale of Besancon could though be the first of many for the Barrière group. A source said: “The Barriere Group wants to refocus its business. Barrière does not wish to speak on the subject at the moment as it is too early and no decision has been taken yet. Several casinos could be affected though, including those in Briançon, Chamonix, Carnac, Jonzac, Dax, Les Sables d’Olonne and Port Leucate.”