LNG Leisure&Gaming

RNS Number:6736L
Leisure & Gaming plc
14 January 2008


14 January 2008

                           Leisure & Gaming plc

                              Trading Update

Leisure & Gaming plc ("Leisure and Gaming" or "the Company"), the online betting
and gaming group, provides a trading update for the fourth quarter of 2007 and
guidance for the financial performance of the Company for the 12 months ending
31st December 2007.

As detailed in its last trading update at the end of September 2007, the Company
suffered a disappointing second and third quarter, incurring substantial trading
losses.  For the full year, including all central costs, the Company expects to
report a gross profit of approximately Euro3.2m and an EBIT loss for the year of
approximately Euro1.6m.

The Company announced in November a strategy update outlining significant
changes that had been made to the Company's operations. These included:
strengthening the Company's risk management team; restructuring franchisee
commissions; removing underperforming franchisees from the Betshop network; and
opening a new operations centre in Italy.

Since these changes were completed at the beginning of October 2007,
profitability has markedly improved with Q4 trading as follows:

     - Net win of Euro6.6m (vs Euro7.0m for the equivalent period in 2006)

     - Gross profit of Euro1.8m (vs Euro0.3m for the equivalent period in 2006)

In December 2007, the Italian regulator published protocols for skill gaming,
which will allow for the provision of poker and other new gaming products by the
Company in the course of 2008. The Company is well positioned to benefit from
the introduction of such new products and the associated revenue opportunities.

Leisure and Gaming continues to progress a number of corporate discussions with
several parties and expects to be in a position to update the market presently.

Henry Birch, Chief Executive of Leisure & Gaming said:

"We are delighted that after a disappointing 2007, we ended the year on a high
note with very positive trading in the fourth quarter.  Having completed an
initial restructuring of our operations and cost base, we feel that we are in a
good position to capitalise on the growth in the Italian market and are
optimistic for the year ahead."


For further information, please contact:

Henry Birch, Chief Executive, Leisure & Gaming plc
Tel: 020 8150 5718

Jonathon Brill/Caroline Stewart, Financial Dynamics
Tel: 020 7831 3113

William Vandyk, Blue Oar Securities
Tel: 020 7448 4400


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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