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Probability Half year report to end September shows lower NGR

11/9/09 - The AIM-listed mobile gambling technology company Probability has presented unaudited results for half year to end September 2009, revealing a decline in net gaming revenue to GBP 2 478 000 (first half 2008: GBP 2 621 000). However, revenues during the period were up 4.7 percent on the same period in 2008.
Other figures of note were:
*     Pre-tax loss of GBP 255 000, following increased investment in technology and people. (First half 2008: Profit of GBP 166,000)
*     Net cash and equivalents around GBP 2 million.
Operational Highlights included:
*     116 619 new players registered.
*     GBP 46 million in mobile cash wagers handled.
*     New game launches including Battleship slots, Ramesses Riches and "X-Factor" slots.
*     Orbis partnership agreement concluded.
*     International business development agreement with Dragonfish/
*     mFuse "Novo" integration platform partnership.
*     New contract win with Mirror Group Newspapers.
*     Recognition by Deloitte as number 4 in their Technology "Fast 50", fastest growing companies over the past 5 years in the UK.
*     Product development agreement with NextGen gaming, a specialist Slots designer.
Charles Cohen, CEO of Probability, commented: "The first half of this year went pretty much according to plan, with progress on all fronts.
"We have been able to increase investment in our technology and business development capabilities. This investment will enable us to take advantage of the wider opportunities we see as a gaming operator and as a mobile gaming platform provider for on-line operators.
"Whilst we continue to grow our core business and explore these opportunities, we will be investing further and as a consequence we now expect to defer profitability at least until the next financial year.
"Curtailing investment at this stage in the company's development for the sake of short term profits is not, in our view, in the interests of creating long term value for shareholders.
"The key investments are in technology and people to allow us to grow faster and in more product areas. We are internationalising our platform to allow for multi-lingual and multi-currency services, and have also created a dedicated team for smartphone applications including iPhone, Blackberry and Android devices.
"A project is also well under way to more than double the operating capacity of our systems in anticipation of significant growth in the next few years."
Cohen went on to announce the appointment as managing director for consumer brands of Matthew Sunderland, formerly a senior executive from G2 - the on-line services division of GTech.
"Matt will be responsible for all of our direct-to-consumer business and brings with him years of hands on experience creating and building on-line gaming services for St. Minver and G2," said Cohen.
"At the same time, Glenn Elliott, who is currently Chief Operating Officer, will be focussing on our business-to-business services and will be working closely with our partners such as Dragonfish and Orbis to ensure the success of this new division within Probability. Glenn's background in the mobile industry, particularly with Orange, makes him the ideal person to lead this new division."
Probability chairman Graham Parr said: "The internal changes we are making to create a business-to-business and a direct-to-consumer division, headed by two talented executives, is an important moment for us as we drive the business forward. We have and will continue to invest in expanding our technology base and our revenue generating capabilities in both these lines of business."

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