Probability bullish on US after B2B revenues treble
B2B revenue growth of 246% in Q4 follows deal with William Hill " Nevada licence application progressing.
Mobile specialist Probability remains confident of securing a supplier licence in the newly regulating state of Nevada, the company has said in a statement accompanying its results for the year ended 31 March 2012.
Chief executive Charles Cohen (pictured) revealed in January that the company was “excited” about US developments, before telling eGaming Review the following month that it was in the process of applying for suitability approval for a licence application in the Silver State.
In today’s statement Cohen explained: “We are…progressing our ambition to seek a licence to offer our technology in Nevada, although this is a complex process with at this stage no clear timetable.”
He added that “Internationally, as more markets open to regulated activity, including individual states in the US, we see chances for both B2B licensing, and B2C/ white label.”
However the company will not enter the Spanish or Danish markets, citing prohibitive costs.
Cohen’s comments followed a strong fourth quarter, in which Probability’s B2B revenues grew by 246% year on-year after the completion of a number of deals before the end of Q3.
Fourth-quarter NGR for the company was up 31.25% to £2.1m, contributing to a 35% year-on-year increase for the full financial year (up from £5.4m to £7.3m).
Smartphone usage also more than doubled in the quarter, to the point that it now comprises 76% of players compared to 30% in the corresponding quarter last year.
A B2B deal with William Hill, making Probability’s games available to customers on Hills’ mobile site, was enacted in the fourth quarter, while the AIM-listed business has also revealed that “Other major contracts with significant gaming companies, including Ladbrokes, have been signed and are in the process of being integrated or are awaiting launch.”
Probability is also ready to launch in Mexico following its commercial agreement with Grupo Caliente, and will do so once regulatory approval has been granted in the Central American country.
The company has also completed the first phase of its integration onto Facebook’s mobile platform, with players able to register using Facebook accounts and post results to their profiles on the social network direct from Probability’s games.
Analyst Ivor Jones of Numis retained his firm’s ‘Buy’ recommendation, predicting that FY2013 would be “A remarkable year” for Probability.
He described the Facebook developments as providing the opportunity of “open[ing] up a significant new market,” and added that “The icing on the cake is the endorsement of Probability’s skills by key B2B customers
Probability board member Mark Davies is speaking at next month’s eGaming Review Subscribers Forum. To register and be in with a chance of winning tickets to England v France at Euro 2012, click here.