Probability plc : Trading Update Q3 FY12/13

RNS

Probability plc ("Probability" or "the Company")

Trading Update, Q3 FY12/13

Probability, the mobile gambling specialist, is pleased to update investors on trading in the period from 1 October 2012 to 31 December 2012 inclusive.

The Company has maintained the momentum delivered during the first half of this financial year and remains confident of performing in line with previous guidance for the full year.

Revenues from the Company's Italian customers started to come through during this quarter. Whilst this business has performed in line with expectations, it remains too early to establish a firm medium term forecast, particularly ahead of the introduction of the Company's mobile slots into the Italian market.

The Company also launched its first bespoke slot game for a B2B client this quarter ("40 Shades of Santa", designed for Paddy Power), which exceeded management expectations.
Financial Highlights (unaudited)

• Net Gaming Revenue in the quarter of £2.29m, a year-on-year increase of 22.5% (Q3 FY11/12: £1.88m).

• Deposits from players in the period up 12% on the same quarter last year and December 2012 was a record month for deposits from B2C customers in the UK.

• Registrations of B2C customers in the quarter were 35% higher than the same quarter last year, reflecting the increase in marketing investment in the UK market during the period.

• The contribution from B2B continued to grow. Revenues from Italian B2B customers constituted 43% of total B2B income in the quarter. Total B2B revenues were 207% higher than the same period last year.

Operating Highlights:

• "40 Shades Of Santa", the first bespoke slot game for a B2B client (designed for Paddy Power) exceeded expectations in the quarter. The Company now plans to expand this service.

• New B2B contract with Lottomatica Scommesse, a wholly owned subsidiary of Lottomatica Group S.p.A (LTO.MI), one of the world's largest gambling technology and operating businesses ("Lottomatica"), to provide a mobile casino and slots for the Italian market under the "Vegas Club" brand.

Probability CEO, Charles Cohen commented:

"We have maintained the momentum which we developed during the first half of the year.

"We are achieving positive ROI on our marketing investment in our UK B2C business after around six months and demand from B2B and White Label is strengthening.

"The contribution from Italy is very encouraging and there are opportunities for even more growth once our slot games are approved under regulations which came into force in December. The agreement we announced in January with Lottomatica further demonstrates our technological leadership in mobile gambling.

"Another key development this quarter was the striking success of our first bespoke game for a B2B client, '40 Shades of Santa', produced in partnership with Paddy Power and offered exclusively to their customers.

"This bespoke games service not only offers our B2B customers something they can't get anywhere else, it is also something they can't do themselves due to the cost and complexity of supporting thousands of different specifications of mobile devices.

"We expect to expand our exclusive content offering to more customers in the UK and Italy during 2013 and remain very confident about making further strong progress in the period ahead."

ENDS

For further information please contact:

Probability plc
Charles Cohen (CEO) [phone]
[e-mail]

David Bick (Square1 Consulting) [phone]
[e-mail]

Numis Securities Limited [phone]
Richard Thomas, Nominated Adviser