Winning results hurt Leisure And Gaming

London-based online gaming and betting operator Leisure And Gaming has released a trading update for the first three months of 2010 showing a 57 percent year-on-year drop in gross profits.

Leisure And Gaming reported that gross profits for the three-month period fell to €1.2 million from €2.8 million for the comparable period last year although amounts wagered rose by €5.1 million from the first quarter of 2009 to €37 million.

Although overheads remained static at one million Euros, the firm’s net win margin dropped to 15.7 percent from 27.3 percent a year ago to produce net profits before interest and tax for the first quarter of 2010 of €200,000 compared with €1.8 million for the same period in 2009.

“This year's first quarter saw disappointing margins on sportsbetting as the dominant teams in the Premiership and European football leagues recorded consistent success throughout the quarter, contrasting with margins seen in the first quarter of 2009 when these teams regularly failed to win,” said Richard Creed, Chief Executive Officer for Leisure And Gaming.

“This further emphasises the need to continue with our strategy of product and geographic diversification, thereby improving revenue stability.”