L&G Q4: poker rise counters casino, sports fall
Leisure & Gaming (L&G), the AIM-listed gaming operator, has revealed its unaudited results for the quarter ended 31 December 2009, which show a plummet in casino and a dip in sports betting revenues countered by a surge in poker...
LEISURE & GAMING (L&G) has revealed its unaudited results for the quarter ended 31 December 2009, which show a plummet in casino and a dip in sports betting revenues countered by a surge in poker.
Amounts played on the AIM-listed operator’s casino products plummeted by almost 70% to 4.5m, from 14.7m in 2008, generating net win down by a third to 0.2m, from 0.3m in 2008, which the company blamed on the closure of the Acropolis casino, a move to poker and a change of casino provider in Greece.
Amounts wagered on sports betting also fared badly, dropping 14% to 19.4m from 22.4m in 2008, generating a net win of 4.3m, down from 4.9m, which L&G said was due to bad weather in the last two weeks of December which hit UK sports in particular; while amounts played on lotto and skill games were down 30% to 0.7m, from 1m, generating net win of 0.1m – just half that of 2008’s 0.2m.
This was in stark contrast to tournament fees for poker, which rose more than five times to 14.7m, from 2.7m in 2008, earning a rake of 2.0m, four times that of 2008’s 0.5m.
Chief executive Richard Creed said: “Poker activity in Italy has increased and now contributes 30% of net win, with weekly tournament fees of 1.1m. The adverse weather in late December resulted in a disruption in the matches played which led to a smaller fixture list causing reduced volumes and margins.”
Other income from advertising dipped to 0.5m, from 0.6m. Gross profit earned was 1.8m (2008: 1.9m).
The Group negotiated the release of 0.6m from the guarantees which support the Italian gaming licenses, but made investments during the year that included 0.6m on software development, 0.6m on loan repayments, 0.5m tax prepaid for 2009 (in addition to the payment of the 2008 liability) and 0.4m on property in Reggio Calabria.
A company statement read that “in the light of this expenditure and possible further guarantees being required for casino games coupled with continued software development, the Group is unlikely to declare a dividend for 2009.”