Probability posts £750k loss
Mobile gaming company Probability recorded losses of more than £750,000 in the six months ending 30 September 2010 due to anticipated investment costs.
Mobile gaming company Probability recorded losses of more than £750,000 in the six months ending 30 September 2010 but promised to reverse the slide from March next year when it switches from an Alderney to a Gibraltar license, the company’s CEO said in an interim statement today.
The AIM-listed business announced a pre-tax loss of £758,000 which was “in line with management expectations” due to costs relating to “strategic technology investment”, the acquisition of a Gibraltar license and “operational restructuring”, the statement said.
Probability’s net gaming revenue in the six-month period was £2.31m, a fall from £2.47m over the same period last year.
During the six month period, Probability set up a new Gibraltar operations centre, launched “Touch” casino for iPhone and Android smartphones and invested further in technology and marketing. The company also signed a B2B partnership with Paddy Power in May this year to supply its content to the Irish operator.
Charles Cohen, chief executive, said: “Our results in the first half include costs related to the acquisition of a new remote gambling license in Gibraltar, the setting up of a new operational centre there, and restructuring of our UK and Alderney teams as a consequence. As a prudent accounting policy we have chosen to expense all of these items into this period.
“The net result is that from October 2010 we are operating from a decreasing fixed cost base. The savings will be even greater from March 2011 when we plan to surrender our Alderney license and all of our services will be operated under our Gibraltar license.”