LNG results ahead of forecasts as spending and activity hold up 12/02/2009

Jake Pollard

Leisure and Gaming’s growing number of partners in its key Italian and Cypriot markets and launch of real money poker in Italy during the fourth quarter of 2008 has enabled it to perform ahead of expectations, the company revealed today.

The company’s Italian partner network increased by 13%, or 65 outlets, to 584, while the number of active partners in Cyprus more than doubled, from 21 up to 47. The company’s online business in Greece also grew, thanks to the launch of new casino products targeting that market.

Key performance indicators for the three month period to the end of December 2008 showed amounts wagered rising 6% to €24.1m, compared with €22.7m in 2007, gross profit was up 11% to €2m on €1.8m in 2007, net win was up 5% to €6.5m compared with €6.2m in 2007, net win margin dropped 0.3% to 27% during the period. The company had €1.5m on its balance sheet as of 31 December 2008, excluding cash held in escrow covering guarantees of €2.2m.

Leisure and Gaming said its bank loans and sterling overdraft had been converted into a three-year Euro loan of €1.3m with equal annual repayment geared to business cash flow. Chief executive Richard Creed said trading since the New Year had been ahead of expectations, with no reduction in customer spending or business activity.

He added: “In particular, the introduction of real-money poker tournaments in Italy has been well received. In the six weeks to 31 December 2008, 4,886 unique customers played in these tournaments, of which 80% were existing customers, 20% of the new poker customers have also wagered on sports events. The rescheduling of bank and loan note borrowings results in annual capital and interest repayments being projected to be less than 25% of cash flow over the next year.”

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Posted: 12/02/2009