Glu Mobile to follow real-money slots roll-out with launch of casino suites

Mobile games developer Glu Mobile has launched its second real-money gambling title with mobile gaming specialist Probability, ahead of the planned roll-out of a complete suite of casino games.

The latest Glu Mobile title to launch with Probability is Contract Killer slots, based on the highly successful Contract Killer game originally launched in 2011, which has been downloaded more than 40 million times.

Contract Killer slots, together with the previously launched Samurai vs. Zombies Defense slots, will be made available to real-money gamers in the UK through Probability's distribution network, as well as to Probability’s network of gambling operators.

"We were pleased with the initial player response to Samurai vs. Zombies Defense Slots and continue to see a significant long-term opportunity in the mobile real-money gambling market," said Glu chief executive Niccolo de Masi. "Our relationship with Probability allows us to offer high-quality mobile casino products in the UK and we look forward to extending these offerings as additional markets adjust regulations."

The company added that it has begun development of Glu-IP-branded mobile casino suites together with Probability with an expected launch date of Q3 2013. The mobile casino suites will be delivered through Probability's white label program and will include Blackjack, Roulette, and Bingo.

"Our strategic relationship combines Glu's popular social gaming IP with Probability's innovative real-money mobile games," said Charles Cohen, Probability CEO. "We look forward to addressing the growing audience of players enjoying real-money gaming on mobile devices."

NASDAQ-listed Glu Mobile saw its share price drop almost 7 per cent Thursday following publication of its first quarter 2013 results.

The company’s revenues in the first quarter fell by 11.2 per cent year-on-year to $19.1m, with gross profit falling by 12 per cent to $16.0m. A similar reduction in operating expenses to $21.5m and a lower income tax provision helped the company to reduce it net loss for the period from $6.8m a year ago to $5.5m in Q1 2013.

“We were pleased with the monetization milestones delivered during the quarter in a number of both new and existing titles,” said de Masi. “We remain excited by the potential of Glu Publishing which signed three significant titles that we expect to launch by the end of Q3. Glu remains committed to increasing ARPDAU and positioning the company to lead in a Social Gaming 2.0 landscape. We will continue to utilize our brand to extend our reach, as evidenced by our growing relationship with Probability plc.”

Shares in Glu Mobile (NASDAQ:GLUU) closed in New York Thursday down 6.64 per cent at $2.81 per share.

Shares in Probability plc (Co. Data) (LSE:PBTY) closed unchanged in London Thursday at 64.00 pence per share, ahead of their 52-week low of 61.00 pence per share.