Revenues up at Probability

Mobile gambling technology provider Probability plc has reported its interim results for the six months ended September 20, 2012 delivering soaring growth in net gaming revenues of 38 percent.

Unaudited Financial Highlights for period April 1, 2012 to September 30, 2012 include:

–   Net gaming revenue (“NGR”) increased 38 percent to GBP 4.53 million (H1/FY2012: GBP 3.27million).

–   Cash deposits by customers are up 44 percent compared to the 6 month period ended September 30, 2011.

–   Unaudited pre-tax loss for the period of GBP 658 000 (after expensing marketing investments of GBP 1.87 million in the period and the direct costs and amortisation associated with the acquisition and operation of Playyoo during the period of approximately GBP 275 000). (H1/FY2012: loss GBP 88 000)

–   Cash and cash equivalents at the end of the period were GBP 685 000 following intensive marketing investments towards the end of the period. (H1/FY2012: GBP 2.23 million).

–   Adjusted EBITDA loss of GBP 287 000 for the core UK business, after removing costs related to Playyoo and share option charges.

The company said its acquisition of Playyoo has accelerated its entry into the Italian regulated gambling market where it was recently awarded licensure from AAMS. A white label offering is planned for launch in the Italian market to complement Probability’s existing B2B service in the UK in the near future.

Probability doubled its client base for white label offerings, which now has 29 brands live, of which half of these were recruited in the last six months. Deposits from White Label players were reported as 45 percent higher in the period compared to the same period last year.

Its B2B division delivered continued growth with the Company entering into a new B2B agreement with 888 Holdings in a mobile game supply deal which will see its games integrated into 888’s Dragonfish platform.

Probability’s “LadyLuck’s iPhone app”, which was accepted into the UK Apple App Store, is reported to have been frequently listed in the top three downloads of its category.

Trading Update – Post September 30, 2012:

Following a brand licencing and white label agreement with Glu Mobile, the firm said it is developing mobile games based on titles and characters licenced from Glu which will include “Contract Killer Slots”, “Samurai vs. Zombies: Slots” and “Deer Hunter Reloaded Slots”.

Its UK B2B business is reported to be performing particularly strongly with partnerships including Paddy Power and William Hill and a further integration into Ladbrokes underway.

In Italy, contracts with SNAI, Cogetech and NeoMobile are said to be delivering early revenues. All the major Playyoo customers have agreed to offer the Company’s mobile slots products as soon as these become available following certification.

Probability Chief Executive Officer, Charles Cohen, comments:

“We remain determined to capitalise on our first mover advantage in mobile gambling and we believe this market is now at a tipping point.

“The transition of mobile gambling from an early-adopter niche to mass marketability is a fact, not an aspiration. The ongoing success of our TV advertising and Facebook promotions attest to this.

“Our ability to grow will no longer be constrained by the size of the market or the limited scope of regulation in our main markets.

“We have the proven technology, the expertise, the regulatory status, the talent and the resources to take a sizable portion of what will clearly be a major part of the global gambling business over the next few years.

“We are rapidly building Probability to be both big and profitable, a balanced and truly international leader in regulated gambling markets.”