The situation in Greece makes the future of Queenco Leisure International’s operations there uncertain in the foreseeable future. The company continues to cut costs where appropriate and preserve cash whilst focusing on maintaining market position and customer service. Already four QLI properties, two in Romania and two in Bulgaria, are up for sale. In the three months ended 31 March 2010, net profit is down €6.4 million from first quarter 2009.

The company says that the continuing fall in consumer spending and increased taxation on business and private income in Greece will impact further on QLI’s earnings and profitability. Customer incentive schemes are in place to help maintain visitor numbers. The flagship operation, Casino Loutraki, generated EBITDA of €2.2 million in the quarter, down 77% from €9.6 million in 2009. Loss before tax was €5.9 million compared to a €1 million profit before tax in first quarter 2009.

QLI first opened casinos in Loutraki and Bucharest in 1995 and by 2007 had acquired other properties in Greece, Serbia, Czech Republic, Romania and Bulgaria and was involved in a US$10 million purchase of land in Cambodia for a beachfront resort. Now the company has reduced staff headcount and salaries across the group. Ron Be’ery, Chairman of QLI, commented that despite the challenging economic situation the company’s skilled operational management teams continue to attract high levels of customers to the Group’s casinos.

He added, “Importantly, QLI has no debt which will stand the Company in good stead throughout this challenging economic period.” Mr Be’ery will continue to serve as a Director of QLI but is standing down as Executive Chairman of the Board of Directors. He is being replaced by Mr Yigal Zilkha. (E-06.02.10)

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