national leisure and gaming earnings guidance

(Ref: 08/001)
NATIONAL LEISURE & GAMING EARNINGS GUIDANCE
Listed hotel and gaming operator National Leisure & Gaming Limited (ASX: NLG) has revised its
expected FY08 EBITDA to $12.6m (from $18.5m as advised on 1 November 2007).
Two predominant reasons for the expected EBITDA revision have been cited by the NLG Board.
Firstly, the contribution of gaming gross profit in FY08 is expected to be $5.2m lower than projected,
primarily attributable to:
• the detrimental effect on gaming trade from NSW smoking bans in those hotels, which having
not had capital works upgrades in order to mitigate the resultant trade contraction, will be
greater than originally anticipated; and
• the proposed capital works program, which was to include the strategic refurbishment of
approximately 19 Sydney western suburbs gaming venues, has been materially protracted due
to building works timing overruns and an immediate lack of funding. Funding for the proposed
capital works program was to come from an amalgam of operational cash flow reserves and an
existing BNZA capital expenditure debt facility. As a result of amended smoking legislation’s
greater than anticipated effects on trade, the opportunities available to NLG for funding the
capital works out of operational cash flow have been largely suppressed and the capital
expenditure facility with the BNZA has been suspended until such time as the current rights
issue is successfully completed and the proceeds used to reduce the BNZA facility.
Secondly, a number of corporate costs totalling approximately $800,000, the majority of which are
non-recurring, have been expensed in the first half of FY08.
“Coupling a demonstrable contraction of gaming revenue as a result of amendments to NSW smoking
legislation far more than originally anticipated with an incomplete capital works program has left
NLG’s earnings forecast chronologically 12 months behind the original EBITDA projections,” said Mr
Andrew Jolliffe, NLG CEO and Managing Director.
Upon successful completion of the current rights issue and the resultant reduction of the BNZA
facility, NLG expects the capital expenditure facility to be reinstituted and the 19 hotel refurbishment
program to progress to completion prior to the end of FY08.
About NLG:
NLG is one of Australia’s largest hotel operators and the country’s only listed specialist hotel and gaming owner and
operator. NLG’s portfolio spans 39 leaseholds hotels and 1,006 electronic gaming machines
For further details, please contact:
Andrew Jolliffe David Greek
CEO and Managing Director CFO and Company Secretary
(02) 9370 9509 (02) 9370 9507