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Sunday, December 22, 2013

Probability in talks with casino operators as it eyes US
Full Probability profile here
Probability is bringing gambling fun to the smartphone generation. Since 2003, Probability has been developing and operating gambling games for mobile users in regulated markets. Our b2b and b2c services deploy over 30 games, supporting thousands of mobile devices, in several languages. Probability is listed on the AIM market of the London Stock Exchange with ticker symbol PBTY.L One day, every gambling company will be a mobile company. Until that day, there's Probability.

Probability in talks with casino operators as it eyes US

Saturday, December 21, 2013 by John Harrington

Mobile gaming software specialist Probability (LON:PBTY) is starting to see growth again after taking action to reshape its business-to-consumer (B2C) activities.

As previously announced in October, July saw the cost of customer acquisition (CPA) on the B2C side rise sharply, prompting a change of tack on the part of the management.

That seems to have done the trick, with the company reporting in its interim results that the CPA in November was down by two-thirds on July’s level, and provisional data indicates a close to break-even outcome at the underlying earnings (EBITDA) level for the month.

The company is also seeing improved trends in player retention and yield, while gaming margins have broadly stabilised since September when some big winners affected the bottom line.

On the business-to-business side, revenues from White Label customers are also benefitting from improved retention strategies and new content. Revenues from smartphone customers in this segment are now at or above levels of a year ago, Probability revealed.

Net gaming revenue in the six months to the end of September eased to £3.64mln from £4.53mln the year before, but average revenue per user from B2C and White Label players managed by Probability increased by 8% year-on-year.

Adjusted loss before interest, tax, depreciation and amortisation was £1.34mln, compared to a loss of £225,000 the previous year. Loss before tax widened to £1.59mln from £658,000.

Chief executive officer Charles Cohen said the company is dealing with the legacy of challenges it faced in the first half of the financial year.

"Whilst recovery is still incomplete we have begun to see growth again and our unrelenting focus is to build on this renewed momentum,” Cohen said.

The company’s move into Italy is going well after some industry-wide problems caused by the Italian regulator taking longer to approve new games than expected.

"The Playyoo business which we acquired in August 2012 is now making a positive net contribution to the group from customers in Italy.

"The growth of demand for our unique local games in the App Store has been fantastic. Approval times for new games by the regulator are now coming down, meaning we can speed up our release schedule for this important market in the coming months after the frustrations of 2013 which held us all back,” Cohen revealed.

Having branched out into Italy, the company is now looking across the pond to the USA, where it hopes to enter the regulated gambling market next year.

“The company is in an advanced stage of negotiation with two potential customers to supply our platform, content and management services for regulated activity in their respective US States. These are multi-site, land based casino operators,” Cohen disclosed.


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