Diversification has seen online gaming and betting operator weather the winter freeze to report a year-on-year increase of €8.8 million in amounts wagered.
Friday 12th February 2010
London-based online gaming and betting operator Leisure And Gaming has released a trading update for the fourth quarter of 2009 showing a five percent year-on-year decrease in gross profits to €1.8 million.
However, Leisure And Gaming revealed that the amounts wagered for the quarter rose by €8.8 million compared to the same period in 2008 to €34.4 million while net win increased ten percent year-on-year to €6.6 million.
“Although winter extremes caused fixture list chaos across the key European leagues and chilled sportsbetting volumes in the final few weeks of the quarter, Leisure And Gaming’s results were well insulated by increased diversification,” read a statement from Leisure And Gaming.
The firm stated that its sportsbetting net win margin rose to 22.2 percent from 21.9 percent during the same three-month period in 2008 while its overall net win margin rose by 2.3 percent year-on-year to reach 16.8 percent.
“The fourth quarter saw the freeze fail to halt the groundwork that will enable growth and further diversification of product and territorial presence in 2010,” read the statement from Leisure And Gaming.
The firm stated that its dependence on sportsbetting had been further diluted over the quarter as poker activity in Italy increased to a level that now contributes 30 percent of its net weekly win. Leisure And Gaming revealed that average weekly tournament fees grew from just over €800,000 per week for the first three quarters of 2009 to €1.1 million per week for the final three months of the year.
“With casino games expected to be permitted in Italy from June/July 2010, there has been investment in the structure of an exciting array of casino opportunities,” read the statement from Leisure And Gaming.
“It is anticipated that this increased number of offerings to customers will open further avenues for revenue growth.
“A continuing focus on capping overheads has been balanced by significant investment in software, particularly that required to deliver ‘white-label’ products. A number of ‘white-label’ initiatives are planned for 2010 and seen as promising revenue streams as they mature into 2011 and beyond.”
“We have seen solid progress,” said Richard Creed, Chief Executive Officer for Leisure And Gaming.
“The last quarter has been a constructive period for numerous aspects of our business on which we can confidently develop. I believe we have good reason to take a positive view of our medium-term prospects.”
