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HAS LEISURE AND GAMING TURNED THE CORNER
The UK-listed online gaming and sportsbetting firm Leisure and Gaming has been through some tough times since the loss of the US market due to the UIGEA, but numbers released this week indicate that the company may be turning the corner to a more positive future.
The company announced an operating profit of $2.06 million for the first six months of 2008 after posting a loss of the same amount for the comparative period in 2007.
Although the London-based firm experienced a decrease in wagering to $60.82 million from last year’s $96.29 million, and net win dropped to $16.93 million from 2007’s $20.46 million, its net win margins increased to 27.8 percent from 21.3 percent, driving up gross profits to $5 million from last year’s $1.76 million.
In addition, the gross profit percentage grew from last year’s 1.8 percent to 8.2 percent while overheads decreased to $2.94 million from $3.82 million.
“Results for the first half are marginally ahead of expectations and we are currently on track to meet the full-year forecasts,” said Richard Creed, Chief Executive Officer. “We now have a solid base established, which will provide us with a platform to drive profitable growth going forward allowing us to diversify geographically, drive online performance and provide additional products."
For the six months ending in June, Leisure and Gaming amounts wagered for sportsbetting came in at $55.07 million, down considerably on last year’s $83.79 million, and generated a net win of $14.72 million - lower than last year’s $16.05 million, at a net win percentage of 26.7 percent.
Casino products contributed $27.54 million in plays, down on last year’s $50.52 million, and generated a net win of $883 877, a decrease from last year’s $1.62 million.
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