Quarter 1 Results
April 22 2010 - 2:00AM
UK Regulatory
TIDMLNG
RNS Number : 6026K
Leisure & Gaming plc
22 April 2010
22 April 2010
Leisure & Gaming plc
("L&G" or "the Group")
Unaudited results for the first quarter ended 31 March 2010.
Leisure & Gaming plc (AIM: LNG), the AIM listed European betting and gaming
group, announces its unaudited results for the quarter ended 31 March 2010.
Financial Highlights for Quarter 1
· Amounts wagered EUR37.0m (Q1 2009: EUR31.9m)*
· Net win EUR5.8m (Q1 2009: EUR8.7m)
· Net win margin 15.7% (Q1 2009: 27.3%)
· Gross profit EUR1.2m (Q1 2009: EUR2.8m)
· Overheads static at EUR1.0m (Q1 2009: EUR1.0m)
· Net profit before interest and tax EUR0.2m (Q1 2009: EUR1.8m)
Key Business Performance Indicators for Quarter 1
· Increased business volumes remains encouraging
· Continued success of poker in Italy
· Sports margins lower than management's expectations
· Introduction of B2B business - proprietary betting software for
businesses to drive customer revenues
*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 of EUR16.0m (Q1 2008: EUR10.9m) instead
of poker rake of EUR2.1m (Q1 2009: EUR1.7m), as the Directors believe this more
clearly shows the level of business generated by the Group.
Richard Creed, CEO of Leisure & Gaming plc said:
"This year's first quarter saw disappointing margins on sports betting as the
dominant teams in the Premiership and European football leagues recorded
consistent success throughout the quarter, contrasting with margins seen in Q1
2009, when these teams regularly failed to win. This further emphasises the need
to continue with our strategy of product and geographic diversification, thereby
improving revenue stability.
To this end our poker offering, which provides a steady and predictable revenue
stream, has seen growth in player numbers during the quarter, generating EUR2.1m
(Q1 2009: EUR1.7m) in net win (i.e. gross rake).
In addition, our recently established B2B business division is expected to
further enhance our diversification of the Group, leveraging the infrastructure,
expertise and industry contacts of the senior management team. The initial
response to this offering has been highly encouraging and, with the forthcoming
World Cup expected to generate additional business, we are confident of an
improved performance in the second quarter."
Contacts:
+----------------------------+----------------------------------------+
| Leisure & Gaming plc | Tel: 020 8545 2190 |
+----------------------------+----------------------------------------+
| Richard Creed | |
+----------------------------+----------------------------------------+
| | |
+----------------------------+----------------------------------------+
| FinnCap (Nominated adviser | Tel: 020 7600 1658 |
| and broker) | |
+----------------------------+----------------------------------------+
| Geoff Nash (Corporate | |
| Finance) | |
+----------------------------+----------------------------------------+
| Charlotte Stranner | |
| (Corporate Finance) | |
+----------------------------+----------------------------------------+
| Simon Starr (Corporate | |
| Broking) | |
+----------------------------+----------------------------------------+
| | |
+----------------------------+----------------------------------------+
| Walbrook PR (Financial | Tel: 020 7933 8780 |
| Public Relations) | |
+----------------------------+----------------------------------------+
| Paul McManus | Mob: 07980 541 893 or |
| | paul.mcmanus@walbrookpr.com |
+----------------------------+----------------------------------------+
| Bob Huxford | Mob: 07747 635 908 or |
| | bob.huxford@walbrookpr.com |
+----------------------------+----------------------------------------+
FINANCIAL RESULTS
First quarter ended 31 March 2010
Amounts wagered on sports betting were EUR20.6m (2009: EUR20.4m) generating a net
win of EUR3.3m (2009: EUR6.4m) at a net win percentage of 16.0% (2009: 31.4%). The
lower than projected net win occurred mainly because of the continued success of
the major teams in the European leagues and contrasts dramatically with the
exceptional net win margin in 2009 when favourites regularly failed to win.
Amounts played on casino products were EUR4.3m in plays (2009: EUR10.2m) generating
net win of EUR0.2m (2009: EUR0.4m). The changes made to the casino products for the
online Greek market has reduced volumes.
Amounts played on lotto and skill games were EUR1.0m (2009: EUR0.8m) generating net
win of EUR0.2m (2009: EUR0.2m).
Real-money online tournament poker continued to show good volumes with our
customers entering into tournaments playing EUR16.0m (2009: EUR10.9m) and net win
(i.e. gross rake) of EUR2.1m (2009: EUR1.7m).
The results are shown in table format below:
+-----------------------------------+-------+-------+
| | Q1 | Q1 |
| | 2010 | 2009 |
+-----------------------------------+-------+-------+
| | (EURm) | (EURm) |
+-----------------------------------+-------+-------+
| Turnover | | |
+-----------------------------------+-------+-------+
| Sports betting (inc. horses) | | |
+-----------------------------------+-------+-------+
| Amounts wagered | 20.6 | 20.4 |
+-----------------------------------+-------+-------+
| Net win | 3.3 | 6.4 |
+-----------------------------------+-------+-------+
| Casino | | |
+-----------------------------------+-------+-------+
| Amounts wagered | 4.3 | 10.2 |
+-----------------------------------+-------+-------+
| Net win | 0.2 | 0.4 |
+-----------------------------------+-------+-------+
| Lotto and skills games | | |
+-----------------------------------+-------+-------+
| Amounts wagered | 1.0 | 0.8 |
+-----------------------------------+-------+-------+
| Net win | 0.2 | 0.2 |
+-----------------------------------+-------+-------+
| Poker | | |
+-----------------------------------+-------+-------+
| Amounts wagered | 16.0 | 10.9 |
+-----------------------------------+-------+-------+
| Net win (i.e. Gross rake) | 2.1 | 1.7 |
+-----------------------------------+-------+-------+
| | | |
+-----------------------------------+-------+-------+
| Total net win | 5.8 | 8.7 |
+-----------------------------------+-------+-------+
| Other income | 0.1 | 0.1 |
+-----------------------------------+-------+-------+
| Total income | 5.9 | 8.8 |
+-----------------------------------+-------+-------+
| | | |
+-----------------------------------+-------+-------+
| Cost of sales | (4.7) | (6.0) |
+-----------------------------------+-------+-------+
| Gross profit | 1.2 | 2.8 |
+-----------------------------------+-------+-------+
| | | |
+-----------------------------------+-------+-------+
| Overheads | (1.0) | (1.0) |
+-----------------------------------+-------+-------+
| EBITDA | 0.2 | 1.8 |
+-----------------------------------+-------+-------+
Outlook
The Group's core strategy going forward is to diversify its product offering and
geographic presence in order to improve revenue stability. To this end L&G's
poker offering, which provides a steady and predictable revenue stream, has seen
growth in player numbers and net win during the quarter.
In addition, our recently established B2B business division is expected to
further enhance the diversification of the Group, leveraging the infrastructure,
expertise and industry contacts of the senior management team. The initial
response to this offering has been highly encouraging and, with the forthcoming
World Cup expected to generate additional business, we are confident of an
improved performance in the second quarter.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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