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Probability plc

Probability plc ('the Company')

Q4 Trading Update, Agreement and Full Year Guidance

Probability plc, the mobile gambling technology and services specialist, is pleased to announce its trading results for the fourth quarter of the financial year, covering the period from January 1st 2009 to March 31st 2009. 

The Company is also announcing a new co-development Agreement and product launch, and providing guidance to investors in respect to the full year and beyond.

Trading from Jan 1 - March 31 2009 (Q4, Unaudited)

• Unaudited Net Gaming Revenues in this quarter were £1,126,543. Total Net Gaming Revenues for 2008/9 (unaudited) were £5,056,236, an increase of 60% compared to the previous financial year.

• 49,506 new customers registered during the quarter, taking the total number of new customers registered during the accounting year to 248,667

• Successful launch of 'Grease' branded slots game under licence from Paramount Digital Entertainment, a division of Paramount Pictures, a unit of Viacom (NYSE: VIA.A, VIA.B). 

• Agreement with mFuse Ltd., offering additional distribution opportunities for Probability's mobile gambling games to the mFuse client base of leading bookmakers which includes Ladbrokes, William Hill, Bet365 and SportingBet plc.

• Agreement with FremantleMedia to licence 'The X-Factor', 'The Price Is Right' and other brands for mobile gambling games.

• Strong upturn in activity in March, continuing through April 2009

Commenting on the Quarter, Probability CEO Charles Cohen said: 'Since the start of March we have experienced a strong upswing in customer activity, both in terms of utilisation and new customer registrations, spearheaded by the launch of 'Grease' slots across all networks and to our player base of over 400,000 customers. This game was an immediate hit, taking 2,000,000 individual bets by new and existing players in the first month alone. 

'This momentum has continued into April. Average daily net gaming revenue in the first half of April 2009 was approximately 22% higher than the equivalent daily average across the whole of January 2009. New customer acquisitions were 12% higher on the same basis. 

'Most encouragingly, the average total deposits per cash player per day was 83% higher in the first half of April 2009 than the equivalent figure for the whole of January 2009.

In 2009, we had anticipated that demand in January and February would be weak compared to the previous quarter, as was the case in previous years, but compounded by the recession. The return to growth and profitability in March 2009 shows that we were right to maintain our disciplined approach to marketing and to continue to invest in new products to attract and retain customers in this tough environment. '

 

 

Agreement with NextGen Gaming

The Company is also announcing today that it has entered into a joint development and licensing agreement with NextGen Gaming, one of the world's leading designers of five-reel video slots games.

 

NextGen Gaming is a leading independent supplier of innovative slot games to the gambling industry. NextGen's clients include several of the largest providers of on-line gambling services including 888.com, PartyGaming and Cryptologic. Its slots games feature widely on over a hundred on-line casino and bingo sites.

Under the agreement between Probability and NextGen, the companies will collaborate on designing and implementing mobile versions of NextGen's most popular slots games for distribution by Probability.Game themes and mathematics will be provided by NextGen. 

Probability will distribute the mobile versions of NextGen slot games to its 400,000 plus UK players on LadyLuck's as well as making the games available through it's growing network of B2B partners, including the clients of mFuse Ltd, with whom Probability recently entered into a distribution agreement. 

The first slots game to be produced under the agreement, which is launched today, is 'Ramesses Riches' a game that couples a proven theme with proven mathematics. It is the first five-reel slots game to be launched by Probability, and uses the Company's new slots engine developed during 2008/9.

Full Year Guidance and Growth Outlook

Net gaming revenues for the fiscal year, which are included in KPI statements, total £5,056,236 - an increase of approximately 60% compared to net gaming revenues in fiscal year 2008/9. 

Given the economic conditions for consumer services (including gambling),this outcome represents good progress for the company and we remain confident of our ability to achieve current market expectations for revenues in the new financial year and beyond.  

We have established a market leading position in the emerging area of mobile gambling.That, alongside our strength in direct distribution, means we are increasingly able to position ourselves as an expert partner rather than competitor to the major on-line gambling operators and service providers. 

Much of the investment in new product and brands made during the year has yet to be marketed, but will be so over the coming months, and we anticipate a strong positive impact on revenues accordingly. Products in development already include games based upon brands such as The X-Factor, Trivial Pursuit, Connect4 and Battleship. Our portfolio of games is planned to double this coming year and we also remain on track to expand our direct marketing to consumers outside the UK during 2009/10 from our operational base in Alderney. 

As a matter of prudent accounting policy, it is likely that we will opt to capitalise some or all of the significant investments we made during the year in developing new technology (particularly our new slots and head-to-head gaming platforms) and certain advance payments for marketing contracts and brand licences. 

Adoptingsuch a policy would result in the Company producing a small operating surplus or break-even for the year as a whole. This would compare to an operating loss in the previous financial year of £1,167,000. 

The Company has no debt and net cash and cash equivalents at the end of the financial period (unaudited) were approximately £2.24m. 

The Company expects to be in a position to publish audited accounts before the end of July 2009 for the financial year ending March 31st 2009.

ENDS

Contacts:

Probability plc                            James Moore,                       07980 241 125

                                                     Charles Cohen (CEO)           0207 290 0640

Collins Stewart Europe Ltd.      Bruce Garrow (NOMAD)   0207 523 8350

               

For more information, please visit http://www.probability.co.uk

 

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