Leisure & Gaming Quarterly Encouraging

Published: Thursday, May 31, 2007 Online-Casinos.com

L&G QUARTERLY ENCOURAGING

But May 2007 has a hit in store for the company


UK listed betting company Leisure and Gaming plc took the opportunity of its AGM this week to provide a trading update on its main operational division Betshop Group (Europe) Limited. Whilst showing a generally positive first quarter, the update nevertheless noted "substantial adverse sporting results, including an Italian team winning the Champions' League", has resulted in a material trading loss for the month of May 2007, estimated at approximately Euro 1.4 million at the gross profit level.

For the four months to 30 April 2007 Betshop recorded EBIT of approximately Euro 1.1 million (a 31 percent increase on the equivalent period in 2006), from turnover of approximately Euro 44.6 million (a 91 percent increase on the equivalent period in 2006) and approximate net win of Euro 11.9 million (a 71 percent increase on the equivalent period in 2006).

Turnover continued to grow in May in line with management expectations, subject to the caveat concerning the adverse sporting results already referred to. Management regard this trading loss as an exceptional occurrence and remain confident in the underlying performance of the business as evidenced by the continuing strong growth in turnover and the business development opportunities that are underway.

These include new product launches across Betshop's Italian network of over 1100 franchised retail outlets and the expansion of the business into Romania where the company holds a betting license.