LSE: GAME                      ISE: GAME

London & Dublin  |  22 September, 2014

GameAccount Network plc ("GameAccount Network" or the "Group"), a leading developer and supplier of enterprise-level B2B gaming software and online gaming content, announces results for the six months ended 30 June 2014.

Financial Overview

  • Net Revenue of £4.2m (2013: £9.1m)
  • Excluding system sales of £1.1m (2013: £6.8m), underlying Net Revenue increased 34% to £3.1m (2013: £2.3m)
  • Clean Ebitda1 loss of £0.4m (2013: Earnings of £5.9m), in line with expectations
  • Loss before tax of £0.9m (2013: Profit before tax of £4.9m) and loss per share of £0.02 (2013 EPS £0.16)
  • Strong balance sheet: cash and cash equivalents at the end of the period of £14.0m (2013: £2.2m)
  • Net Assets at the end of the period of £16.9m (2013: £5.8m)

Strategic & Operating Developments

  • Launched Simulated Gaming™ in Connecticut & signed two (2) new US casino clients
  • Post period end signed two (2) further Simulated Gaming™ clients in the US and a further agreement to launch in the Australian market with a consortium of six gaming clubs
  • Developed real money On-property Mobile Gaming capability. Post period announced first on-property mobile gaming client
  • Expanded Internet gaming platform delivered for Betfair in New Jersey
  • Strategic platform provision deal with Konami Gaming, Inc.
  • Continued development of new iSight Back Office™ in US & Europe. Launched post period
  • Invested in US and UK infrastructure: Technical, Licensing, People & Patents

Dermot Smurfit, CEO of GameAccount Network commented:

"The first half of 2014 has continued the period of investment for GameAccount, and, performance to date is in line with our expectations.

Following a transformational year in 2013, GameAccount has continued to position its business to capture growth in online gaming markets, particularly in the US. The first half of 2014 saw the launch of key products across our offering, in particular Simulated Gaming™, together with a number of significant commercial and strategic developments.

Following our launch of real-money gaming in New Jersey last year, the launch of Simulated Gaming™ across the United States has been another innovative step for the business.Simulated Gaming™ represents a US market opportunity estimated at $250m2 in 2015 which is immediately addressable and not contingent on the pace of regulation. We contracted with Foxwoods Resort Casino in 2013 which contributed to revenues in the first half of 2014. Year to date we have contracted with a further four casinos including Osage Casinos, Parx Casino, Empire City Casino and an undisclosed multi-State casino operator which will begin to contribute to revenues in Q4. Initial performance metrics for Simulated Gaming ™ are significantly ahead of expectations and the prospects for this business are exciting. We have today also announced the launch of Simulated Gaming ™ in Australia and are uniquely positioned to capitalise on the opportunities in this market.

Real-money gaming in New Jersey and the pace of regulation in the US market has been slower than expected but we are confident in the long-term prospects for real-money gaming in the years ahead. For 2015 we believe that the opportunity for GameAccount Network with Simulated Gaming ™ will substantially compensate for the slower than expected pace of the development of real-money gaming in the US. 

Our investment in the business continues and we have grown our team and expanded our technical expertise, US infrastructure and gaming content portfolio in the first half. Consistent with our commitment at IPO, we were also recently awarded a patent for our iBridge Framework™ which will protect and benefit the business as we grow in the US market. 

Our first half revenue from gaming system sales was down year-on-year however we are actively engaging with multiple potential system buyers and we remain confident in our ability to continue to deliver on sales of our gaming system to casino equipment manufacturers although the timing of such sales remains uncertain."

Notes

  1. Clean EBITDA is a non GAAP company specific measure and excludes interest, tax, depreciation, amortisation, share based payment expense and other items which the directors consider to be non-recurring and one time in nature
  2. Estimate from independent consultancy commissioned by GameAccount Network

Note regarding forward-looking statements

This announcement includes forward-looking statements, including statements concerning current expectations about future financial performance and economic and market conditions which GameAccount Network believes are reasonable. However, these statements are neither promises nor guarantees, but are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated.

For further information please contact:

GameAccount Network
Dermot Smurfit
Chief Executive Officer
+44 (0) 20 7292 626
dsmurfit@GameAccountNetwork.com

FTI Consulting
Mark Kenny/Jonathan Neilan
+353 1 6633686
gameaccount@fticonsulting.com

Davy
John Frain / Roland French
+353 1 679 6363

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