Probability Issues Its First Ever Profit In Quarterly Report

This story was published more than 10 years ago.

Mobile betting technology group Probability plc has announced its fourth quarter 2012 financial report, noting the firm's first ever quarterly profit.

Key financial indicators for the period ending March 31st, 2013:

  • 60% of platform revenue in the quarter derived from business-to-business services (Q4 FY12: 43%).

  • Average Revenue Per User (“ARPU”) from B2C and white label players in the quarter of £119 per player, an increase of 11%.

  • Net Gaming Revenue of £1.9 million, a decline of 9.5% compared to the same period last year.

  • Full year NGR of £8.8 million, a 20% increase on the previous year, producing a modest full year positive EBITDA for the core UK business.

  • Net cash and equivalents at the end of the quarter of £3.6 million (including net proceeds of £2.6 million raised by the placing in January 2013.

Operational highlights for the period were:

  • Mobile slot games provided to 14 different brands hosted by Dragonfish, including Foxy Bingo, Wink Bingo and

  • Launch of 6 new slot games including the first from a partnership with Glu Mobile, Samurai vs. Zombies Slots, and a second bespoke title for Paddy Power, Steaks And Stallions. More titles were released in this quarter than in the whole of the preceding nine months, made possible by the Probability’s new “Slot-O-Matic” technology which reduces time to market for new games by 90%.

  • Significant contract wins, new product releases and the first operating profits from Playyoo, the company’s Swiss subsidiary focusing on the Italian regulated market, which was acquired in July 2012.

Speaking about the results, Probability CEO Charles Cohen said: “Although achieving profitability within Q4, we experienced softer demand in January and February 2013 following record income in December 2012 across both B2B and B2C."

"Given the seasonality experienced we actively chose to reduce planned marketing spend within the period as we look to maximise the impact of our marketing investment. We saw a strong recovery in March vs. February with both active players and NGR up 23% and 7% respectively, partly driven by new game releases."

“Over this year the business has evolved from being predominantly a B2C operator to now successfully monetising its unique technology platform. More than 60% of platform revenues came from the B2B business in Q4,2013 (43% in Q4,2012) as we become an increasingly critical part of our partners’ mobile offer and increase our network, with 888 Dragonfish now joining Paddy Power, William Hill, Lottomatica, SNAI and others. Despite this shift, our B2C business has continued to grow more than 15% this year compared to last."

“We remain confident of growth in FY14 as we invest in both B2C and B2B revenue streams, supported by aggressive future proofing of our technology platform and game offering with Slot-O-Matic and other innovations.”

About the author

Dustin Jermalowicz // News Editor
Dustin Jermalowicz
Dustin has a long-standing passion for gambling. He has been writing professionally on the subject and breaking industry news for Casino Listings since 2011. His favorite casino games include Blackjack, Poker, and Hi/Lo. A proud native of Detroit, Dustin currently lives in Michigan.