Online gambling operator Leisure & Gaming (LNG) says its performance for the first three months of 2008 is in line with expectations, even though net win is down to 6.5 million from $8.7 million for the equivalent period in 2007 and gross profit is down to $2.1 million from $2.5 million.
In the latter part of 2007 LNG restructured the operations of its main subsidiary
Betshop Italia. LNG implemented a new commission structure for its franchisees, removing underperforming franchisees from the Betshop network and opening a new operations center in Italy. The changes have resulted in reduced operating costs and have strengthened gross profit and EBIT margins.
Betshop has therefore reduced its operating retail network to approximately 470 outlets, a
platform from which it says it can grow profitability. Betshop now has 17 franchised shops operating under its new “corner” licenses, with a further 42 set to open.
In the rest of Europe, the LNG continues to focus on growing its operations in Greece, Cyprus and Romania. The company has signed an agreement with a local marketing partner is Greece who will exclusively promote Betshop.com in return for a share of revenues.