The economic downturn hits Lucien Barrière group

The global financial crisis and the economic downturn keep on striking hard even the French game industry. In addition to American groups like Harrah’s Entertainment, which have been heavily affected by the decline in sales of gaming rooms, a prestigious group from Europe also announces loss of income. The group in question is Barrière, whose officials reported publicly a fall of their profit. After a fall of 15% of their activity in 2008, since the beginning of this year until now, the first French group, in terms of gross gaming revenue, evoke a decline of 12% of its turnover. The information was provided by Dominique Desseigne, the chief of the Supervisory Board. The total turnover of 1.2 billion euros achieved in 2008 risks not to be reached this year. As for the Partouche Group, the main challenger of Barrière and one of the leaders of the industry, this announced its first loss of 8.5 million in 2008.

However, besides gambling, Barrière has a fairly diversified business. Apart from its 35 casinos in France, the group is also the owner of sixteen luxury hotels and more than one hundred restaurants. Thus, to cope with the crisis, the company announced that no recruitment of staff would be made to replace the previous departures. In casinos, apart from the fall in income of games such as poker, the slot machines have also turned down. The opening of the gambling market in France, from 1st January 2010, as announced in the draft, provides more optimism for online casino operators.

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