UK casino operator recovers after July bombings

Casino operator London Clubs International today reported a strong pick-up in trading as it recovered from the impact of the July bombings in the capital.

LCI reported first-half losses of £2.6m (€3.8m) compared with profits of £3.3m (€4.8m) last year after the terror attacks put punters off its venues in London.

However, the group said it had enjoyed good levels of drop and win – the amount punters leave behind at its casinos – since the summer. Shares were almost 3% higher today.

The group, which has seven casinos in the UK and four overseas, said the London bombings led to a decline in business levels during July and August in particular.

This was most evident at Les Ambassadeurs, one of its five casinos serving high rollers in the capital, as the atrocities happened during what is usually a very busy time for the venue.

It coincided with a lucky streak for punters and higher than normal debt levels – although these were from established customers and LCI was confident they would be recovered in the second half.

LCI said its two casinos in Cairo “undoubtedly” benefited from the decline in business in London, with some Middle Eastern visitors choosing to visit Cairo rather than travel to London in July and August. These casinos performed very well, exceeding business levels seen in the same period last year.

The group’s high-end Sportsman casino was now trading at levels seen before its move to a new location and trading levels continued to improve.

Among its casinos elsewhere in the UK, Brighton’s Rendezvous performed at record levels as it continued to benefit from the increased popularity of the Marina area.

Meanwhile, the profitability of LCI’s Fifty joint venture was affected as it won less money from gamblers, although it has built up a strong customer base since its opening in March.

Revenues fell to £73.7m (€108m) in the six months to September 25 from £76.6m (€113m) last time, while operating profits fell to £4.6m (€6.8m) from £11.2m (€16.5m).

The company will benefit from the deregulation of the gaming industry in 2007 after securing licences for new casinos.

Work on new sites in Manchester, Leeds, Nottingham and Glasgow was progressing well and all of them were due to open before the legislation is introduced.