LNG Leisure&Gaming

RNS Number:4221S
Leisure & Gaming plc
16 April 2008


16 April 2008
 
                              Leisure & Gaming plc
                                        
                                 Trading Update
 
Leisure & Gaming plc ("Leisure and Gaming" or "the Company"), the betting and 
gaming group, provides a trading update for the first quarter of 2008.  
 
Trading for the three months to March 31st 2008 has been in line with management's 
expectations and has continued the profitable growth experienced during the fourth 
quarter of 2007 with the following results:
 
*         Net win of Euro6.5m (vs Euro8.7m for the equivalent period in 2007)
*         Gross profit of Euro2.1m (vs Euro2.5m for the equivalent period in 2007)
 
Results were below the comparative period in 2007, which benefited from exceptional 
sports results and was based on a larger estate of shops.
 
Operational Developments
 
In the latter part of 2007 the Company restructured the operations of its main 
subsidiary Betshop Italia, including implementing a new commission structure for 
its franchisees, removing underperforming franchisees from the Betshop network 
and opening a new operations centre in Italy.  These changes have resulted in 
reduced operating costs and have strengthened gross profit and EBIT margins.
 
Betshop has therefore reduced its operating retail network to approximately 470 
outlets, a platform from which it can grow profitability.  Betshop now has 17 
franchised shops operating under its new "corner" licences with a further 42 to 
open. 
 
In the rest of Europe, the Company continues to focus on growing its operations 
in Greece, Cyprus and Romania.  In Greece, the Company is pleased to announce that 
it has signed an agreement with a local marketing partner who will exclusively 
promote Betshop.com in return for a share of revenues.  
 
Corporate Activity
 
Leisure and Gaming has been in discussions to acquire an Italian gaming company 
over the last few months, but has been unable to reach a satisfactory agreement.  
Whilst discussions have not been formally terminated, and the acquisition may come 
to fruition, the Company believes there is little prospect of this occurring in 
the short term.  
 
Henry Birch, Chief Executive of Leisure & Gaming said:
 
"We are pleased that the positive trading from the fourth quarter of 2007 has 
continued and that the Company is on track to meet its expectations.  Having 
restructured the operations of the Company, we are confident that we can deliver 
sustainable profitability going forward.  Furthermore, we believe that as and when 
the Italian regulator allows for gaming products such as casino, poker and bingo, 
this profitability will substantially increase."
 
The Company expects to announce its preliminary results for the year ended 31 
December 2007 on 14 May 2008.  
 
 
For further information, please contact:
 
Henry Birch, Chief Executive, Leisure & Gaming plc
Tel: 020 8150 5718
 
Jonathon Brill/Billy Clegg/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

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