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Mobile gambling specialist turns an H1 2007 loss into a £166,000 pre-tax profit
October 30, 2008 (InfoPowa News) — Charles Cohen, CEO at mobile gambling specialist provider Probability plc announced half year 2008 pre-tax profits of £166,000 this week, an impressive turnaround from the same period in 2007 when the company recorded a loss of £585,000. Cohen used the opportunity to reveal that the company will be expanding into unspecified markets overseas with its LadyLuck mobile casino offering.
Membership has now grown to more than 400,000 mobile customers at LadyLuck, resulting in a soaring net gaming revenue, up 117 percent to £2.6 million for the six months to end September 2008. The casino offers bingo and slots and over the past year has grown rapidly, thanks to major distribution agreements with some of the U.K. mobile phone giants.
Commenting on his typical player, Cohen said: “We are a different business to the major online brands because we are after a different customer. If we tried to sell a high roller mobile casino product to our users at the moment I suspect it would fail. I think that’s the reason the major online brands have not done it yet, because they know those customers are not there yet.”
He added that the company’s focus on low stakes gaming aimed at the mass market uniquely positions it to continue expanding despite difficult economic times. “During these difficult times, we appear to be enjoying a ‘Lidl effect’ as consumers look for value in their entertainment as with everything else,” he said. “Being immediately available on their mobile phone, at 10p a spin, we are in the right place at the right time to capture these customers.”
Cohen does not appear to favor the adoption of white label strategies, saying: “My whole take on this issue is that the customers that are spending low stake money on the mobile [phone] are not the online [Internet] customers. For me to get into business with networks or operators would mean losing the key advantage we have over everybody else, which is a different customer.”
