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ENCOURAGING RESULTS FROM MOBILE GAMBLING OPERATOR

Tuesday July 5, 2011 : Probability reports soaring deposits and new players
 
The UK mobile gambling specialist Probability plc has issued a Q1 2011 trading update with some very positive results from the period April 1st 2011 to 30th June 2011 inclusive.
 
Management reports that the company has continued to experience strong top line growth in player acquisition and player deposits, boosted by new games and white label offerings, along with effective marketing spend targeting smartphone users.
 
A deal in Latin America is also announced.
 
Core business highlights include:
 
* Player deposits in the quarter were 82.6 percent higher than the same quarter in the previous year.
 
* Net Gaming Revenue was, at GBP 1,572,000, 45.6 percent higher than the same quarter in the previous year.
 
* iPhone and Android devices increased to 42 percent of income during June 2011, up from 37 percent three months ago.
  
* Record wagers were processed in June 2011 with a peak of 17 bets per second during the evening of June 29th. June 2011 also saw the highest ever level of player deposits for a single month.
  
* Three new white-label brands were launched during the quarter with new commercial partners.
 
During the quarter, Probability entered into a commercial agreement with Grupo Caliente, a long established gaming group based in Tijuana, Mexico with interests in casino, racing and Bingo in Latin America. Under the agreement, which is the first of its kind for Probability, the company’s mobile gambling services will be offered to players in Mexico and Latin America under Caliente’s local gambling licenses.
 
The first service, planned for Mexico itself, is expected to launch during 2011. Customers in Mexico will be able to play the full range of Probability mobile Bingo, slots and casino games across all mobile platforms and networks.
 
The new offering will have a local brand designed to leverage the high brand recognition of Caliente in this market. Customer services and operations will all take place in Mexico, with Probability providing additional services from its operational centre in Gibraltar.
 
The agreement allows Probability and Caliente to extend the offering into other countries in Latin America as these become available.
 
In Italy, the company has applied for a licence in its own name, but has nothing further to report at this stage.
 
CEO Charles Cohen said in his report:
 
“This was a great quarter again for us; we grew player deposits and numbers despite this being the Bank Holiday season, launched more white labels and progressed our relationship with Caliente, our first engagement outside Europe.
 
“Sharp eyed investors will note that Net Gaming Revenue for the quarter was slightly below that in the previous quarter, despite the increase in player deposits. This was due to a number of customers winning GBP10,000 – GBP20,000 each on some of our more popular Slots during May and June. The payouts were however within the expected parameters of the games and are in themselves no cause for concern. Big winners in a business like ours are something to celebrate, and some of the lucky winners have agreed to publicity.
 
“We have now completed the move of our operations to Gibraltar from Alderney and, post the end of the previous financial year, are enjoying significantly lower fixed overheads than a year ago. This means that in our core business we are generating cash as we continue to grow revenues.
 
“During the next quarter, we are expecting to launch our new mobile Bingo product after nearly six months development. This product is in the late stages of testing and regulatory approval.”



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