LNG Leisure&Gaming

 

TIDMLNG 
 
RNS Number : 7099A 
Leisure & Gaming plc 
14 October 2009 
 

14 October 2009 
 
 
Leisure & Gaming plc 
 
 
Unaudited results for the third quarter ended 30 September 2009 
 
 
Leisure & Gaming plc ("L&G" or "the Group"), the AIM listed European betting and 
gaming group, today announces its unaudited results for the quarter ended 30 
September 2009. 
 
 
Financial Highlights - 
  *  Amounts wagered EUR27.0 m (2008: EUR13.3m) (see note below *) 
  *  Net win EUR4.6m (2008: EUR3.2m) 
  *  Sports betting net win margin 17.1% (2008: 20.5%) 
  *  Overall net win margin 14.8% (2008: 16.8%) 
  *  Gross profit up to EUR1.0m (2008: EUR0.9m) 
  *  Overheads stable at EUR0.9m (2008: EUR0.9m) 
  *  EBITDA  EUR0.1m (2008: EUR0.0m) 
 
 
 
 
 
Key Business Performance Indicators 
  *  The number of active Italian Partners at the start of this season is 589 (2008: 
  519). 
  *  Cypriot partner network of 49 (2008:26) generated business of EUR4.2m (2008: 
  EUR1.2m) 
  *  Greek online business grew from EUR0.7 (2008)  to EUR3.2m 
  *  Poker gross tournament fees were EUR10.3m of a total business in Italy of EUR19.7m 
  (2008: total business in Italy of EUR9.6m) 
 
 
 
 
 
 
 
     Richard Creed, CEO of Leisure & Gaming plc said: 
"Results for the traditionally quiet third quarter showed good growth from last 
year with continued diversification both in terms of geography and products. 
Poker activity continued through the summer months, with only a small dip in 
August. 
Sports margins were lower than expected because of the success of favourites in 
the first few weeks of the season; however, business volumes have been 
excellent, with active customer numbers at a record high. 
The Group is trading in line with management expectations and will announce 
quarter 4 results on 29 January 2010." 
 
 
For further information, please contact: 
Richard Creed, Leisure & Gaming plc 
Tel 020 8545 2190 
 
 
Charles Cunningham/Rose Herbert, FinnCap 
Tel 020 7600 1658 
 
 
Billy Clegg/Caroline Stewart, Financial Dynamics 
Tel 020 7831 3113 
 
 
 
 
*Accounting convention defines amounts wagered as sports betting volume, casino 
and skill games net win and poker rake. The figure of amounts wagered in the 
table above includes poker tournament fees (EUR10.3m) instead of poker rake 
(EUR1.5m), as we believe this more clearly shows the level of business generated 
by the Group. 
 
 
 
 
 
 
 
 
 
 
FINANCIAL RESULTS 
 
 
Third quarter ended 30 September 2009 
In total, the volume generated on all our products for the three months to 30 
September 2009 was EUR27.0m (2008: EUR13.3m), earning net win of EUR4.6m (2008: 
EUR3.2m). 
 
 
Amounts wagered on sports betting, including horses were EUR16.4m (2008: EUR12.7m) 
generating a net win of EUR2.8m (2008: EUR2.6m) at a net win percentage of 17.1% 
(2008: 20.5%). Sports betting margins were lower than expected in the first few 
weeks of the season with many favourites winning, however business volumes have 
been excellent with Italian sports betting achieving previous year levels in 
spite of the significant growth in poker. 
 
 
Amounts played on casino products were EUR3.8m (2008: EUR5.7m) generating net win of 
EUR0.2m (2008: EUR0.4m). The closure of the Acropolis casino in December 2008 
accounts for the reduction. 
 
 
Amounts played on lotto and skill games were EUR0.5m (2008: EUR0.6m) generating net 
win of EUR0.1m (2008: EUR0.2m). 
 
 
In the period, the tournament fees for poker generated EUR10.3m with gross rake 
(included as net win) earned of EUR1.5m. 
 
 
From the above, it can be seen that the growth in net win resulted from poker. 
 
 
The cost of sales amounted to EUR3.6m (2008: EUR2.5m) which included commissions 
payable to our partner network, betting duties, IT software provider 
commissions, bonuses given to customers and the cost of processing payments to 
and from customers. In this quarter, the costs also included the Palermo 
sponsorship deal and increased IT development expenditure. 
 
 
Gross profit earned was EUR1.0m (2008: EUR0.9m) 
 
 
Administrative costs were EUR0.9m (2008: EUR0.9m) 
 
 
Operating profit for the three months was EUR0.1m (2008: Break even) 
 
 
 
 
 
REVIEW OF OPERATIONS 
 
 
Italy 
The number of active partners at the start of this season is 589 as compared 
with 519 in 2008, which shows solid growth. 
The introduction of the Italian Superannalotto will provide further products for 
customers to enjoy. 
 
 
Cyprus 
Our number of partners remains at 49 as compared with 26 in 2008. The business 
generated in Cyprus has increased to EUR4.2m from EUR1.2m in the previous year. 
 
 
Greece 
The online offering in Greece, which was launched in April 2008, has shown good 
growth and generated over EUR3.2m in activity (2008:EUR0.7m). The new government 
voted in at the recent elections are expected to permit land based operations by 
the end of the year and the Group has already reached an agreement to open a 
number of locations as soon as legislation permits. 
 
 
Regulatory developments 
The Group's voluntary discussions continue with the US Department of Justice in 
connection with gaming activities undertaken by subsidiary companies between 
June 2005 and October 2006 when the companies were sold for a token $1, prior to 
the enactment of the UIGEA.The Group never made a cash profit from the ownership 
of these companies. 
 
 
 
 
OUTLOOK 
The fourth quarter is the busiest of the year and we start the season with an 
expanded number of partners. Poker activity through July and August, which is a 
quiet business period, was encouraging with volumes remaining high, providing a 
reliable contribution to profits. This trend has continued in September. 
 
 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 MSCMJBATMMTBBJL 
 

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