London-based Probability, the listed mobile telephone gambling specialists, has announced its audited results for the year and revealed that net gaming revenues had increased by 152 percent from $2.5 million to $6.32 million.
The firm’s gross operating margin also increased to 75 percent from 2007’s 46 percent while full year operating losses were cut in line with management’s expectations by 70 percent to $2.34 million from $7.76 million.
Probability revealed its first quarterly operating profit during the third quarter and raised $3.38 million minus expenses through a placing to IPGL Limited in February for investing in accelerated growth. In addition, it doubled its customer base by adding over 160,000 new players to its flagship LadyLuck’s mobile casino, bingo and slot service and signed direct distribution agreements with the Orange, Three and Vodafone networks.
There was also an exclusive deal signed to pre-install a link to LadyLuck’s on two million handsets on the Three network over 2008 alongside ‘white-label’ contracts with News Corporation and Rank Group.
“Last year was a transformational year for Probability,” said Charles Cohen, Chief Executive Officer for Probability.
“We started loss-making and finished profitable, well capitalised with improved margins and significant momentum to carry us into what we confidently expect to be our first fully profitable financial year.
“As today’s results show, the business delivered a 152 percent increase in net gaming revenues while keeping overheads in check and, on schedule, began making profits on a monthly basis during the second half. We also doubled our customer base through a focused strategy of direct acquisition on mobile and partnerships with network operators.
“Most importantly, we have shown beyond any doubt this year the viability of the mobile gambling business model. Consumers are happy to spend money gambling on their mobile phones. Mobile gambling is set to be a mass-market popular form of entertainment and Probability is at the forefront.”