For some interested parties, Probability PLC’s path to profitability has perhaps been a long time coming, but after various investments and a lot of hard work in both the business to business and business to consumer markets, the company has recently announced its first ever profitable quarter in over nine years of operations. This is great news for one of our favourite mobile gaming providers and investors alike and the results are made all the more remarkable by the fact that net gaming revenues actually declined by 9.5% year on year to £1.9 million. What made the profit possible was the fact that Probability has adopted something of a shifted strategy with a strong increase in business to business transactions, with such agreements now forming more than 60% of their overall revenue, an increase of 17% since 2012 alone.
While Probability continues to successfully operate its two standout mobile casinos, LadyLucks and Moobile Games, their advancements as a software provider to other companies is clear to see. For example, we have reported on several occasions that Probability was one of the first companies to enter the newly regulated Italian mobile casino market through the purchase of Playoo and the agreement to provide mobile slot games to the mammoth Lottomatica organisation. This partnership already looks to be paying dividends and will undoubtedly provide a cornerstone of the company’s future success.
Of course, the road to profitability was by no means accidental, as explained by Charles Cohen, CEO of Probability. “This has been a transformational year for Probability with the company entering the Italian market and the core UK business delivering its maiden quarterly profit and a modest earnings before interest, tax, depreciation and amortisation profit for the full 2013 financial year. Although achieving profitability in the fourth quarter, we experienced softer demand in January and February 2013 following record income in December of 2012 across both business to business and business to consumer sectors. Given the seasonality experienced we actively chose to reduce planned marketing spend within the period as we look to maximise the impact of our marketing investment.”
The development of the business to business aspect of Probability’s offering has been clear to see for many players in their native UK market. Anyone playing at any of the major independent mobile bingo operators or any mobile offering from 888 will have seen the addition of a full suite of Probability mobile slots to their apps and web interfaces, while Paddy Power went ahead and commissioned a custom built slots game from Probability for inclusion within their own mobile games portal. The games kept on coming at the mobile casinos of both partners and Probability’s own brands following the development of their Slot-O-Matic platform which actively reduces development and deployment time from a matter of months to just days, with virtually every mobile platform supported automatically. Charles Cohen identified the significance of the new platform when commenting “We remain confident of growth in fiscal year 2014 as we invest in both business to consumer and business to business revenue streams, supported by aggressive future-proofing of our technology platform and game offerings with Slot-O-Matic and other innovations.”
The company as a whole has already forecast full year revenues amounting to £8.8 million which would represent a 20% improvement over the 2013 period and be by far the company’s best performing year to date. Among the most likely revenue drivers in the coming year are extensions of the company’s strategy for getting into new markets as soon as they become available. With both the French and Spanish markets becoming increasingly amenable to foreign companies, not to mention the increasing likelihood of legalised online gambling in the US, it may well be the kind of strategy that makes Probability as a major player.
As we wait and see how the year develops for the company, you can check out our reviews of both LadyLucks Mobile Casino and Moobile Games here at MobileCasino.net for a personal view of exactly what the company has to offer mobile players.