Break Even for L&G
October 16, 2008 (InfoPowa News) — Internet and land gambling group Leisure and Gaming plc released its third-quarter results ended September 30 this week with positive news for investors following a rationalization program.
Despite a traditionally quiet quarter, the group achieved a gross profit of €900,000 (2007: €500,000) and an operating break-even position that was €700,000 better than the comparable Q3 period last year.
Financial highlights included:
Amounts wagered: €13.3 million (down from 2007's €19 million)
Net win: €3.2 million (2007: €4.6 million)
Net win margin held at 24.1 percent
Gross profit up 80 percent at €900,000 (2007: €500,000)
Gross profit percentage 6.8 percent (2007: 2.6 percent)
Overheads reduced by 25 percent to €900,000 (2007: €1.2 million)
Operating break-even compared with a loss of €700,000 last time.
The company reported that its land interests in the Italian partner network were increased from 474 to 519 outlets, with a growing number of partners that is carrying forward into the fourth quarter. Poker for fun was launched on the Italian network, and trials on slots have commenced. Italian operations are managed by newly appointed Italy CEO Fabrizio Motterlini. The total number of active punters on Betshop Italia's books has reached 28,974 (2007: 26,293).
Operations in Cyprus also went to plan, with active partners increasing 40 percent from 15 to 21,
Richard Creed, CEO, said: "The Group has now recorded four quarters of profitable recovery, indicating that our business has turned the corner following its extensive restructuring in September 2007.
"In particular, the €700 000 improvement in operating profit for the quarter, as compared to last year, demonstrates the benefit of the restructuring of the partner network which continues to deliver higher returns.
"Partner and customer numbers continue to grow, which, coupled with our strengthened platform and continued geographic diversification, places the group in a good position to take advantage [going into] what is traditionally our busiest time of year."
Moving ahead, Leisure & Gaming said that for the fourth quarter, additional products and revenue-earning avenues would begin to make a contribution to profits.