TIDMPBTY
RNS Number : 1945Y
Probability plc
22 January 2014
22 January 2014
Probability plc ("Probability" or "the Company")
Trading Update for the quarter ended 31 December 2013
Improvements in core business, strong growth in Italy.
Probability plc, the mobile gambling services and technology
specialist, is pleased to provide unaudited key performance
indicators for the third quarter of the financial year (1 October
2013 to 31 December 2013 inclusive).
Financial and Operating Highlights (unaudited):
-- Core B2C business continues to improve, delivering 5.1%
quarter-on-quarter growth in total net gaming revenue to GBP2.0m
(Q3 FY13: GBP2.3m).
-- Gaming margins in B2C stable at 4.8% against previous quarter win margin of 4.9%.
-- Improved yields from B2C and White Label players. Quarterly
average revenues per player were 6% higher compared to the
preceding quarter, as gaming margins stabilised and promotional
campaigns performed well.
-- Wagering volume per active player in the core B2C business
was 3% higher than the previous quarter and 16% higher than the
equivalent period a year ago, boosted by innovations such as the
unique Daily Bonus Bonanza feature for LadyLuck's customers in the
UK.
-- Player acquisition costs reduced by a further 37% per new
customer in the period compared to the preceding quarter through
continued efficiencies in targeting and higher conversion
rates.
-- Renewal of our contract with William Hill online as a B2B
partner and launch of "Project Xmas" bespoke slot for
PaddyPower.
-- Revenues from Italy grew 36% compared to the previous quarter.
-- Net cash and equivalents at the end of the quarter of
cGBP1.4m, following marketing investments of GBP0.5m during the
quarter (Q2 FY14: cash at period end: GBP1.7m).
Commenting on the trading update, Probability CEO Charles Cohen
said, "This was the second quarter of growth in a row, as we
continue to focus upon delivering a business built upon solid
foundations of cost efficient marketing and higher per-player
revenues. All the underlying metrics, such as conversion rates,
deposits per active player, and wagering levels point to this being
a sustainable trend that we can build upon.
"Revenues from UK smartphone players in December in our higher
margin B2C and White Label businesses were better than at any time
in the last twelve months, and on significantly lower marketing and
promotional cost than previously. This more than offset the
continuing decline in revenues from legacy featurephone customers,
which is now down to a third of its value a year ago. The upward
trend is continuing into January as we continue to drive efficiency
in marketing spend and improve revenues from our database.
"We had a strong quarter in Italy with NGR growing 36% on the
previous quarter. The business was boosted by new product launches
with partners including GTech (Lottomatica) and our sports betting
product for SNAI prior to the two-week winter break for Italian
football at the end of December.
"Marketing investment in the quarter was GBP0.5m which typically
takes up to six months to produce a positive net return.
"Looking forward to the final quarter of this financial year, we
have seen good momentum coming in to January in Italy, the football
season has also re-commenced after the Christmas break, increasing
betting activity again.
"We have a number of exciting product launches in the pipeline
for the next few months both for the UK and Italy where we are also
preparing to launch our first White Label offering.
"As we mentioned in our last update, the company is in advanced
discussions with a major US Casino operator to provide a solution
for the regulated market there. These conversations are proceeding
well and we will continue to update investors on this new
opportunity when appropriate to do so."
ENDS
For further information, please contact:
Charles Cohen, Chief Executive +44(0) 20 7092
Probability plc Officer 8801
Qurban Hussain, Chief Financial
Officer
Numis Securities Richard Thomas, Nominated Adviser +44(0) 20 7260
Limited Alex Ham, Corporate Broking 1000
+44(0) 20 7929
Square 1 Consulting David Bick, Public Relations 5599
Notes on KPI definitions:
"B2C" - revenues derived from players recruited to services
operated under a brand owned by the Company, either through direct
marketing by the Company or by affiliates on behalf of the Company.
B2C services utilise one of the Company's remote gambling licences
and the Company takes all regulatory responsibility.
"B2B" - revenues derived from players using games hosted on the
Company's software platform who are recruited to the platform by a
Partner. Unless this Partner is themselves a regulated gambling
operator, the Company retains all regulatory responsibility for the
players and the player relationship is managed by Probability
including banking, support and promotions.
"Platform Revenue" - gross cash staked less gross cash won net
of progressive jackpot contributions by consumers playing the
Company's mobile gambling products on its platform, regardless of
the source of that customer.
"Net Gaming Revenue" - Platform Revenues less promotional costs
to existing customers, less revenue shares paid to certain B2B
partners.
"Active Player" - a valid account holder who places at least one
cash wager in the period.
"ARPU" - Platform Revenues per Active player.
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTEAKFFALFLEFF
Probability (LSE:PBTY)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Probability (LSE:PBTY)
Gráfica de Acción Histórica
De May 2023 a May 2024