26th Sep 2013 07:00
26 September 2013
24/7 GAMING GROUP HOLDINGS PLC
(24/7 Gaming Group or "the Group")
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2013
24/7 Gaming Group, the holding company for a group which provides services to the fast growing mobile gaming industry for smart phones and tablets, is pleased to announce its maiden interim consolidated results for the six months ended 30 June 2013.
Highlights
· Successful admission to trading on AIM bringing new funds of €2.75m, post the period end
· Admission proceeds are being deployed to accelerate marketing and new customer acquisition
Commenting on the results and admission to AIM, Mr. Rogier Smit, Chief Executive Officer, said:
"I am pleased to present the Interim Results for the six months ended 30 June 2013. This has been a very important year in the development of 24/7 Gaming Group: having used the past six months to successfully implement its marketing and customer acquisition technology, the admission to AIM was as a key stepping-stone for the company. The new funds will enable the Group to accelerate its marketing campaigns. Its public listing will allow 24/7 Gaming Group to position itself in European and other overseas markets."
For further information please contact:
24/7 Gaming Group | +31 (0)20 676 03 04 |
Rogier Smit, CEO |
|
Marcel Noordeloos, CFO |
|
|
|
Newgate Threadneedle | +44 (0)207 653 9850 |
Graham Herring |
|
Adam Lloyd Robyn McConnachie |
|
Westhouse Securities |
|
Antonio Bossi Paul Gillam
| +44 (0)20 7601 6100 |
24/7 GAMING GROUP HOLDINGS PLC
CHIEF EXECUTIVE OFFICER'S STATEMENT
I am pleased to present the Interim Report for the six months ended 30 June 2013. This has been a very important period in the development of the Group, with 24/7 Gaming Group Holdings plc successfully raising € 1,700,000 (£ 1,445,000) during the first six months of the year. An additional € 2,100,000 (approximately £ 1,785,000) before expenses was raised conditional to having the Company's shares admitted to trading on AIM, which took place on 31 July 2013. The admission to AIM was as a key stepping-stone for the Group. The new funds will enable the Group to accelerate its marketing campaigns and the profile afforded by its public listing will allow 24/7 to position itself in European and other overseas markets.
Business review
Current Trading
The WannaGaming mobile casino portfolio is currently fully available to access through mobile devices. The Group has undertaken several test marketing campaigns over the last few months, through multiple publishers, to optimise its marketing spend. The Group has focused most of its marketing so far on the UK.
In the first six months of 2013, WannaGaming registered over 3,000 new players, of which 1,457 placed a wager. The average deposit per player over the period January 2013 - June 2013 amounted to €314. The Directors believe that these are encouraging results considering the small amount spent on marketing and given the fact that these players remain active.
With the funds received on admission, the Group is rolling out its new marketing campaigns.
Outlook
We continue to focus on building the WannaGaming brand and acquiring new players for the mobile casino business.
Rogier W. Smit
Chief Executive Officer
26 September 2013
CONSOLIDATED INCOME STATEMENT
|
| Unaudited |
| Unaudited |
| Audited |
|
| 6 months ended |
| 6 months ended |
| Year ended |
|
| 30 June 2013 |
| 30 June 2012 |
| 31 December 2012 |
|
| € |
| € |
| € |
|
|
|
|
|
|
|
Revenue |
| 39,964 |
| 17,939 |
| 48,811 |
Costs of goods and services |
| (80,176) |
| (55,402) |
| (136,042) |
Gross Loss |
| (40,212) |
| (37,463) |
| (87,231) |
|
|
|
|
|
|
|
Listing expense |
| 561,494 |
| - |
| 176,312 |
Salary expense |
| 396,296 |
| 401,654 |
| 965,704 |
Marketing and selling expense |
| 111,585 |
| 112,723 |
| 265,328 |
General administrative expense |
| 301,372 |
| 331,254 |
| 552,816 |
Depreciation and amortization |
| 96,361 |
| 96,260 |
| 194,778 |
Total administrative expense |
| 1,467,108 |
| 941,891 |
| 1,978,626 |
|
|
|
|
|
|
|
Operating Loss |
| (1,507,320) |
| (979,354) |
| (2,065,857) |
|
|
|
|
|
|
|
Interest expense |
| (11,439) |
| (15,376) |
| (33,749) |
Loss before tax |
| (1,518,759) |
| (994,730) |
| (2,275,918) |
Taxation |
| 121,500 |
| 135,000 |
| 428,176 |
Loss for the financial period |
| (1,397,259) |
| (859,730) |
| (1,847,742) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (unaudited)
|
| Additional |
|
|
|
|
|
| paid-in | Combination | Retained |
|
|
| Share capital | capital | reserve | Earnings |
| Total |
| € | € | € | € |
| € |
|
|
|
|
|
|
|
Balance at 31 December 2011 | 50,675 | 1,713,025 | 0 | (1,618,690) |
| 145,010 |
|
|
|
|
|
|
|
Issuance of Shares | 18,353 | 99,900 | - | - |
| 118,253 |
Loss for the financial period | - | - | - | (880,094) |
| (880,094) |
Balance at 30 June 2012 | 69,028 | 1,812,925 | 0 | (2,498,784) |
| (616,831) |
|
|
|
|
|
|
|
Issuance of Shares | 16,985 | 1,101,015 | - | - |
| 1,118,000 |
Loss for the financial period | - | - | - | (967,648) |
| (967,648) |
Balance at 31 December 2012 | 86,013 | 2,913,940 | 0 | (3,466,432) |
| (466,479) |
|
|
|
|
|
|
|
Issuance of Shares | - | 1,897,564 | - | - |
| 1,897,564 |
Loss for the financial period | - | - | - | (1,397,259) |
| (1,397,259) |
Acquisition of subsidiaries | (86,013) | (2,913,940) | 2,999,953 | - |
| - |
Balance at 30 June 2013 | (0) | 1,897,564 | 2,999,953 | (4,863,691) |
| 33,826 |
CONSOLIDATED BALANCE SHEET
| Unaudited |
| Unaudited |
| Audited |
|
|
|
|
|
|
| 30 June |
| 30 June |
| 31 December |
| 2013 |
| 2012 |
| 2012 |
| € |
| € |
| € |
Non-current assets |
|
|
|
|
|
Property, plant and equipment | 60,798 |
| 96,956 |
| 78,799 |
Intangible assets | 230,141 |
| 397,164 |
| 307,502 |
Deferred tax Asset | 986,976 |
| 572,299 |
| 865,476 |
Total non-current assets | 1,277,915 |
| 1,066,419 |
| 1,251,777 |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash and cash equivalents | 1,274 |
| 8,882 |
| 1,248 |
Trade and other receivables | 836,492 |
| 160,368 |
| 111,920 |
Total current assets | 837,766 |
| 169,250 |
| 113,168 |
|
|
|
|
|
|
Total Assets | 2,115,681 |
| 1,235,669 |
| 1,364,945 |
|
|
|
|
|
|
Equity and liabilities |
|
|
|
|
|
Share capital | - |
| 69,028 |
| 86,013 |
Additional paid in capital | 1,897,564 |
| 1,812,925 |
| 2,913,940 |
Combination reserve | 2,999,953 |
| - |
| - |
Retained earnings | (4,863,691) |
| (2,498,784) |
| (3,466,432) |
Total shareholders' equity | 33,826 |
| (616,831) |
| (466,479) |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Trade and other payables | 1,567,829 |
| 1,480,160 |
| 1,441,924 |
Borrowings | 514,026 |
| - |
| 200,000 |
Total current liabilities | 2,081,855 |
| 1,480,160 |
| 1,641,924 |
|
|
|
|
|
|
Total equity and liabilities | 2,115,681 |
| 1,235,669 |
| 1,364,945 |
CONSOLIDATED CASH FLOW STATEMENT
Unaudited |
| Audited | ||||
|
| Year ended | ||||
|
| 6 months ended 30 June |
| 31 December | ||
|
| 2013 |
| 2012 |
| 2012 |
|
| € |
| € |
| € |
|
|
|
|
|
|
|
CASH FLOW FROM OPERATING ACTIVITIES |
| (1,805,974) |
| (178,091) |
| (1,238,045) |
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
Purchases of Property, Plant and Equipment |
| (1,000) |
| (3,150) |
| (27,150) |
NET CASH OUTFLOW FROM INVESTING ACTIVITIES |
| (1,000) |
| (3,150) |
| (27,150) |
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
Proceeds of issue of new shares |
| 1,700,000 |
| 118,253 |
| 1,236,253 |
Loans received |
| 271,000 |
| 41,680 |
| - |
Loans repaid |
| (164,000) |
| - |
| - |
NET CASH INFLOW FROM FINANCING ACITIVITIES |
| 1,807,000 |
| 159,933 |
| 1,236,253 |
|
|
|
|
|
|
|
Net (decrease) / increase in cash and cash equivalents |
| 26 |
| (21,308) |
| (28,942) |
Cash and Cash equivalents at start of period |
| 1,248 |
| 30,190 |
| 30,190 |
Cash and Cash equivalents at end of period |
| 1,274 |
| 8,882 |
| 1,248 |
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2013
1 Basis of preparation
The interim consolidated financial statements incorporate the results of 24/7 Gaming Group Holding Plc (the "Company") and entities controlled by the Company (its subsidiaries) (collectively the "Group").
The interim consolidated financial statements are unaudited, do not constitute statutory accounts and were approved by the Board of directors on 25 September 2013.
Between 13 December 2012 and 3 July 2013 the Company, 24/7 Gaming Group NV and shareholders of
24/7 Gaming Group NV entered into share exchange agreements pursuant to which the Company acquired approximately 99.77 per cent of the issued share capital of 24/7 Gaming Group NV and became the Group's parent company. This acquisition has been treated in these financial statements as a continuation of the businesses and is therefore considered by the directors as outside the scope of IFRS 3, since no business combination is occurring.
The preparation of interim consolidated financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
In preparing the interim consolidated financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended 31 December 2012.
The accounting policies applied by the Group in the interim consolidated financial statements comply with each International Financial Reporting Standards that is mandatory for accounting for the six months ended 30 June 2013. These policies are consistent with those to be adopted in the Group's consolidated financial statements for the year ended 31 December 2013.
The principal risks and uncertainties of the Group have not changed since the last annual financial statements and the Admission Document (31 July 2013) where a detailed explanation of such risks and uncertainties can be found.
2. Segmental information
An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group's other components. All operating segments' operating results are reviewed regularly by the Group's CEO to make decisions about resources to be allocated to the segment and to assess its performance, and for which discrete financial information is available.
In the opinion of the directors, the Group has two reportable operating segments as follows:
- Mobile gaming- Video Console publishing
A split of the revenue generated by these segments is as follows:
| 6 months ended 30 June 2013 | 6 months ended30 June 2012 | Year ended31 December 2012 |
| € | € | € |
Mobile Gaming | 29,172 | 4,051 | 17,278 |
Video Console Publishing | 10,792 | 13,888 | 31,533 |
Total Revenue | 39,964 | 17,939 | 48,811 |
3. Taxation
Taxation of the Company and its subsidiaries is recognised based on the rules and regulations of their respective countries of incorporation.
A deferred tax asset has been recognised as at 30 June 2013 and as at the two preceding balance sheet dates based on the Group's cumulative loss before tax up to and including the year ended 31 December 2012. The directors believe that there will be sufficient future taxable profit within the business in order to utilise these losses.
4. Loss per share
| 6 months ended 30 June 2013 | 6 months ended30 June 2012 | Year ended31 December 2012 | |
| € | € | € | |
|
|
|
| |
| (1,419,158) | (859,730) | (1,847,742) | |
|
|
|
| |
Weighted number of ordinary shares | 119,486,119 | 74,551,997 | 89,066,406 | |
|
|
|
| |
Basic and diluted loss per share (in €) | (0.01) | (0.01) | (0.02) | |
|
|
|
|
Basic loss per share has been calculated by dividing the net results attributable to ordinary shareholders by the weighted average number of shares in issue during the period. For the purpose of calculating the loss per share for the six months ended 30 June 2013 the weighted average number of shares has treated the shares issued on the share for share exchange in 24/7 Gaming Group Holdings Plc as being in existence throughout the period.
There are no dilutive potential ordinary shares as at 30 June 2013 and 2012, or 31 December 2012.
The Company issued 20,550,000 ordinary shares on 31 July 2013 at the time of the Admission to AIM.
5. Intangible fixed assets
The intangible fixed assets are tested twice a year for impairment and the last impairment test was carried out as at 30 June 2013, where the recoverable amount of the cash-generating unit was determined based on discounted cash flow method.
As at 30 June 2013, the directors did not consider there to be any impairment in respect of any intangible asset.
| Publishing licenses | Development costs | Setup fees | Total |
| € | € | € | € |
Net book value as at 31 December 2012 | 78,334 | 211,168 | 18,000 | 307,502 |
Amortization for the period | (39,166) | (35,195) | (3,000) | (77,361) |
Book value as at 30 June 2013 | 39,168 | 175,973 | 15,000 | 230,141 |
|
|
|
|
|
6. Operating lease commitments
The future aggregate minimum lease payments under non-cancellable operating leases as at 30 June 2013 and 2012 are as follows:
| 30 June 2013 | 30 June 2012 | 31 December 2012 |
| € | € | € |
|
|
|
|
No later than 1 year | 140,000 | 140,000 | 140,000 |
Later than 1 year and no later than 5 years | 222,000 | 362,000 | 362,000 |
7. Cash flow from operating activities
|
| Unaudited |
| Audited | ||
|
|
|
| Year ended | ||
|
| 6 months ended 30 June |
| 31 December | ||
|
| 2013 |
| 2012 |
| 2012 |
|
| € |
| € |
| € |
|
|
|
|
|
|
|
Loss from operating activities |
| (1,507,320) |
| (979,354) |
| (2,242,169) |
Depreciation & Amortization |
| 96,361 |
| 96,260 |
| 194,778 |
Loss before working capital change |
| (1,410,959) |
| (883,094) |
| (2,047,391) |
|
|
|
|
|
|
|
(Increase) / Decrease in receivables |
| (724,598) |
| (18,038) |
| 24,524 |
Increase / (Decrease) in payables |
| 329,583 |
| 723,041 |
| 784,822 |
CASH FLOW FROM OPERATING ACTIVITIES |
| (1,805,974) |
| (178,091) |
| (1,238,045) |
8. Post balance sheet events
In July 2013, the Company received the remainder of the pre-admission funding. The total amount of funds received between 1 July and 17 July amounted to € 650,000.
On 31 July 2013, the Company completed the process of listing the Company on the AIM market of the London Stock Exchange. The Company received € 2,100,000 funding, which was received on 31 July 2013, based on the successful admission to AIM, for which the Company issued 20,450,000 ordinary shares.
On 1 August 2013, the Company repaid an amount of €200,000 on a total outstanding loan of € 407,027 to M.W. van Bree.
-------------------------------------
Related Shares:
B90 Holdings