Italian job for L&G boosts FY profit by 67%
Solid growth from its BetshopItalia business helped Leisure & Gaming (L&G) record 67% year-on-year growth in full-year 2009 operating profit to 2.5m, from 1.5m last year. Total amounts staked grew 5.5% to 81.1m, from 76.9m the previous year.
Solid growth from its BetshopItalia business helped Leisure & Gaming (L&G) record 67% year-on-year growth in full-year 2009 operating profit to 2.5m, from 1.5m last year. Total amounts staked grew 5.5% to 81.1m, from 76.9m the previous year.
Tournament poker provided the greatest uplift to L&G’s bottom line, with Italian customers spending 47m on joining poker tournaments in 2009, compared to 2.7m in 2008, with poker contributing 27% of total net win, compared to just 2% in 2008.
However, poker growth in Italy, where approximately a third of its customers now play poker as well as bet on sports, had been achieved to the detriment of sports betting, the company revealed. Sports betting volumes in the territory fell to 43.4m last year, from 53.9m in 2008.
Total sports betting volumes nevertheless remained broadly stable at 70.2m, marginally down on the 2008 figure of 71.3m, with the fall in sports betting volumes in Italy compensated by growth in betting volumes from Cyprus (to 17.5m from 14.6m in 2008) and Greece (to 8.9m from 2.5m).
L&G chief executive Richard Creed said: “Figures published by the Italian regulator show that the Italian gaming market is growing by 20%. In addition, the imminent regulation of casino and cash poker games, is expected to provide significant growth opportunities.
The group also revealed it is in discussion with suppliers to launch bingo in Italy, and that it had recently obtained a gaming licence in Malta to cover all other online activities in regulated territories in Europe.
A statement added that it expended “a considerable amount of time and energy” in the latter part of 2009 providing information to the US Department of Justice regarding the US-facing subsidiaries L&G sold prior to the passage of the UIGEA in October 2006. “We remain hopeful that we can reach an agreement with the US Department of Justice which will provide us clarity on this matter,” it said.
L&G’s first-quarter 2010 results, also unveiled this morning, however revealed net profit dipped sharply to 0.2m, from 1.8m, and amounts wagered by 16% to 37.0m, from 31.9m, compared to the same period last year. The company said this was due to poor sports betting margins arising from the consistent success of the dominant teams in the leading domestic football leagues across Europe. “This further emphasises the need to continue with our strategy of product and geographic diversification, thereby improving revenue stability,” said the company in its statement.