Probability delivers mixed bag of results

Mobile gambling services firm Probability plc faired marginally better in its year ending March 31, 2013 results compared to its 2012 showing.

Key performance highlights include:

–     Net gaming revenues of GBP 8.6 million (FY12: GBP 7.2 Million), a 20 percent increase
–     Turned in an EBITDA profit of GBP 41 000 compared to last year’s loss of GBP 360 000.
–     Overall loss for the year was GBP 0.6 million (FY12: GBP 0.5 million). This figure includes share option charges, depreciation and amortisation totaling GBP 0.5 million (FY12 GBP 0.2 million).
–     Cash and cash equivalents at 31March 2013 GBP 3.4 million (31March 2012: GBP 1.8 million).
–     Average Revenue per User (“ARPU”) from B2C active players in the year of GBP 161, a 7 percent increase on previous year.
–     55 percent of Platform Gross Revenue derived from business-to-business (“B2B”) services (FY12: 44 percent).

The company said it has reined in marketing spend in anticipation of what it terms major product launches for its next generation HD Slots and Casino HTML5 games in the first two quarters of its 2014 fiscal year.

In a trading update, Probability reported lower first quarter net gaming revenues of GBP 1.8 million compared to the same period in 2013, which it attributes to lower investment in customer acquisition, although it says this has since picked up.

Probability revealed its focus lies in “innovative, distinctive games with pure mobile “DNA” being at the heart of the Company’s strategic vision” saying it will also continue to grow B2C through investment in acquisition and promotion and are further investing in the development of its own affiliate programme.

Charles Cohen, co-founder and CEO of Probability, said:

“We are pleased overall with our performance in FY13, delivering 20% revenue growth and a positive adjusted EBITDA despite having taken some tough decisions which were entirely necessary in order to position Probability for the next phase of growth in the mobile gambling market. Sometimes you need to take a pit stop for new tyres and fuel.”

In related news, Probability’s chief operating officer Matthew Sunderland will leave the company to pursue “opportunities outside of the UK”.

No replacement is planned with Sunderland’s functions distributed amongst other senior managers that include the newly appointed head of B2B Glenn Elliot.