29th Sep 2014 08:21
LONDON (Alliance News) - GameAccount Network PLC Monday saw its shares fall after it said it swung to a first-half loss and revenue more than halved, after its revenue last year was boosted by a major internet gaming system sale, and the company said its full-year results this year remains heavily dependant on such a sale before the end of the year.
The developer and supplier of enterprise-level B2B gaming software and online gaming content said it swung to a pretax loss of GBP908,000 for the six months to June 30, compared with a pretax profit of GBP4.9 million in the first half of 2013, as revenue fell to GBP4.2 million, down from GBP9.1 million last year.
It said the first half of 2013 included revenues from a material system sale of GBP6.8 million.
"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," said Chief Executive Dermot Smurfit in a statement.
The sale of internet gaming systems remains a key component of the company's current earnings stream.
The group said it expects to complete a "material" system sale before the end of 2014, although it said it is unsure of the timing.
"The financial outcome for the 2014 full year will be significantly impacted by the successful conclusion of a system sale; as was our performance in 2013," the company said.
GameAccount said it continues to invest heavily in its simulated and real money gaming businesses in the US, by increasing headcount in the UK and expanding the US sales team.
"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," said Smurfit.
In a separate statement Monday, the company said it will launch a Simulated Gaming entertainment experience in Australia, in partnership with six major Australian community based clubs. It said it expects the launch to be in the first quarter of 2015, and is subject to any relevant regulatory approvals. Real money Internet gaming is currently prohibited in Australia.
"Simulated Gaming has been proven to increase visitation to US casinos and we anticipate the same dynamic in Australia. This pioneering group of clubs will benefit from increased visitation from existing and new patrons and hope to reverse the migration of their patrons to offshore real money internet gaming websites," said Smurfit.
GameAccount shares were down 3.2% at 76.00 pence Monday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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