EMPHASIS ON B2B IN LATEST PROBABILITY PLC RESULTS
29th October, 2013 at 15:19:27
57% of platform revenue delivered by B2B, but NGR down y-o-y.
Mobile gambling provider Probability plc has issued a trading update for the quarter ending September 30 2013, reporting increases in the business-to-business division's contribution to group revenues and the following highlights from its fiscal Q2 - 2014:
* 57% of platform revenue in the quarter derived from business-to-business services (Q2 FY13: 52 percent).
* Net Gaming Revenue up 4% on Q1 at £ 1.9 million, but down compared to Q2-2013, when NGR reached £ 2.2 million.
* 47% growth in B2B revenues to £ 600,000 for the quarter.
* Average Revenue Per User from B2C and white label players managed by Probability at £ 106 per player, up 2% vs. Q2 FY13: £ 104.
* Net cash and equivalents at the end of the quarter of £ 1.7 million.
Operating highlights included:
* Launch in September of a new mobile payment option for UK players, which within four weeks is capturing 46% of first time deposits.
* Launch of new iOS apps for core B2C brands. Mobile Games App listed as number one downloaded iOS free Casino app in UK App Store in first week.
* New game launches: Roulette HD and Mayan Moola for iOS and Android.
* Completion of certification of Probability's technology platform by Italian regulator AAMS, enabling launch of white label services.
* Stakes from customers up 10% vs. the previous quarter, but margins thinner due to major wins.
* Revenues from B2C activities in the UK 9% lower than the prior quarter.
* Revenues from legacy feature phone customers declined, with GGR down 20% quarter on quarter.
* Marketing investment reduced to compensate for cost-of-acquisition volatility.
* B2B success in developing an exclusive 'Hot and Slotty' game for Paddy Power
* Contract signed with Italian firm Sisal to create an iOS And Android application for its Superenalotto service.
Management said that the slow start to the financial year continued into the summer period, and increases the challenge of meeting Probability's full year expectations.
The launch of a new white label business in Italy along with new product rollouts to existing customers should support faster revenue growth from this division in the coming six months. Probability has a strong pipeline for new white label services in the UK and anticipates that improved CRM strategies will support revenue growth from new and existing partners.
Related News Tags: Uk, Mobile Gambling, Italy, Paddy Power