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Bad 4th Quarter for L and G

From -  Q4 2009 results posted this week by the Leisure and Gaming plc group show plunging revenues in casino and sports betting ameliorated by good poker  results, especially in the Italian market.
Figures to end December last year show revenues from casino products dived by almost 70 percent to Euro 4.5 million, from Euro 14.7 million in 2008, generating a net win reduced by a third to Euro 200 000, from Euro 300 000 last time. The dismal performance was attributed to the closure of Acropolis casino, a move to poker and a change of casino provider in Greece. 
Sports betting revenues similarly plunged, declining 14 percent to Euro 19.4 million (2008: Euro 22.4 million) and delivering a net win of Euro 4.3 million, down Euro 600 000 from the 2008 equivalent. Lotto and skill games were also down 30 percent to Euro 700 000, generating a net win 50 percent down at Euro 200 000.
Poker reversed the downward trend, delivering an increase in tournament fees some five times greater than last time to Euro 14.7 million, (2008: Euro 2.7 million) on which rake of Euro 2 million was earened - four times greater than the same period last year. 
"Poker activity in Italy has increased and now contributes 30 percent of net win, with weekly tournament fees of Euro1.1 million," said chief executive Richard Creed. "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 Euro 500 000, a drop of Euro 100 000 from last year.
Gross profit earned was Euro 1.8 million - Euro 100 000 lower than in 2008.
Although the group recovered Euro 600 000 in license guarantees, this was largely spent on other operational imperatives. "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,” a company statement warned.

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