Leisure and Gaming Stocks Plummet - 04-18-08 |
April 18 - Exceptional sports results and a larger estate of betting shops in
the first quarter of 2007, are the reasons cited by Leisure and Gaming
Plc management for the company's poor 2008 Q1 financial report. According to the
numbers, Leisure and Gaming experienced a 16% decrease in gross profits - which
stood at GBP 2.1-million in this year's first quarter. Net winnings in this time
period were GBP 6.5-million - a total drop of 25%.
Responding to the news, Leisure and Gaming share prices dropped 15% in London
yesterday.
To its credit, Leisure and Gaming has spent the first quarter of the year
restructuring its Italia operation with the intention of reducing costs. In
addition, the company has removed several underperforming outlets from its
network to increase profitability.
At present, there are seven franchised shops (operating under the company's
corner licenses) and a total of 470 retail outlets registered with Leisure and
Gaming. Growth is expected through the opening of a further 42 franchised shops
in the near future.
The Chief Executive of Leisure and Gaming, Henry Birch said: "We are pleased
that the positive trading from the fourth quarter of 2007 has continued and the
company is on track to meet its expectations. Having restructured the operations
of the company, we are confident that we can deliver substantial profitability
going forward. Further, we believe that as and when the Italian regulator allows
for gaming products such as casino, poker and bingo, this profitability will
substantially increase."
Besides pinning its hopes on the growth in the Italian market, Leisure and
Gaming has also entered into an agreement with an as yet unnamed Greek partner
that will market its Betshop.com operations.
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