09-01-2007 Leisure & Gaming trading in line with market expectations

The online sports betting and gaming group said revenues from continuing operations, including BetShop.com, BetShop Italia and GoalsLive.com, in the second half substantially exceeded the company's forecasts. However its sports betting margins were lower than expected due to adverse sports results.

Leisure & Gaming added that its net win exceeded its forecasts, but it expects gross profit to fall short as Italian betting tax is charged on revenue rather than on net win. The company also won 47 new licenses in Italy for horse racing and sports betting to complement its existing Betshop Italia network.

Chief Executive Henry Birch commented: "2006 was a challenging year for Leisure & Gaming with US legislative change materially impacting our business and the industry as a whole. We now enter 2007 with a uccessfully restructured group and a fast-growing, dynamic company, Betshop, at its centre. Revenues in our Italian business were substantially ahead of expectations in the latter half of 2006, and we are encouraged by our award of new licences and the growth opportunities that exist in the Italian market."

In other news, BSkyB is closing in on the 365 Media acquisition after receiving valid acceptances of its offer from shareholders representing approximately 59.9 per cent of the company's issued share capital. Accordingly, Sky Holdings has acquired 89.4 per cent of the existing capital of 365 Media.

Mobile games developer Zero36 has filed a patent for its location-based filtering system technology which enables the legal access of mobile casino games in locations where gambling is legal. The company said the sytem will enable land-based casinos to extend their activities to the mobile market.

The Independent reports a comment from Simon French of Numis Secutities who said Ladbrokes' international strategy is beginning to gain momentum. "We think the Ebit [earnings before interest and tax] contribution from international operations is likely to be at the upper end of the £20m-£40m guidance within three to five years," said French.