28th Sep 2015 10:48
LONDON (Alliance News) - GameAccount Network PLC on Monday reported a widened pretax loss and lower revenue in the first half of 2015, as it makes investments into the business and was hit by delays in sales, but the AIM-listed company said it is working to improve performance through its Simulated Gaming operations.
Shares in GameAccount were trading down 12% at 48.18 pence Monday morning.
The B2B gaming software and online gaming content supplier said its pretax loss in the six months ended June 30 widened to GBP2.6 million from GBP908,000 the year before, as its net revenue decreased to GBP2.9 million from GBP4.2 million.
GameAccount said that its results were hit by investments it is making into the business, as well as by delays in securing additional system sales, but that its performance was in line with its plan and that it is working on building a substantial recurring revenue base in order to offset investment costs and achieve future profitability.
"Our financial results continue to be impacted by delays in securing additional system sales, but we are actively engaged with multiple casino equipment manufacturers and remain confident in our ability to complete a sale either in the fourth quarter of this year or early in 2016,? Chief Executive Dermot Smurfit said in a statement.
GameAccount added that it will achieve growth through its Simulated Gaming operations, which it said will over time compensate for the slower-than-expected pace of real-money internet gaming development in the US. It said that revenue from the Simulated Gaming operators launched in 2014 is continuing to grow in line with plan.
Although the underlying performance of the two new operators launched in 2015 in the US state of Pennsylvania and in Australia is progressing slower than expected, it is confident that their performance will improve.
GameAccount will launch two further US operators in the fourth quarter: one in California and one in Maryland. It said it expects both launches to gain momentum up to year-end and to provide strong growth in Simulated Gaming revenue for 2016.
"The growth opportunity in Simulated Gaming remains significant. There is strong demand for our product which is reflected in the pipeline of prospective customers with a number of exciting deals expected to be completed in the coming quarters," the company said.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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