24/7 Gaming to improve revenue and efficiency after 2013 struggles19th May 2014 7:37 am GMT
Mobile gaming operator 24/7 Gaming Group has posted a loss of £3.1m in its maiden results as a listed company, with the company looking to make enhancements to the branding of its products including the completed acquisition of the domain name 247casino.com.
24/7 Gaming, operator of the WannaGaming-branded mobile casino, said it was a “year of changes” for the company in 2013, which saw it successfully admitted to London’s Alternative Investment Market in July.
|British Pounds (£)||2012||2013|
|Cost of Goods and Services||(136,042)||(278,843)|
|Total Administrative Expenses||(2,154,938)||(3,152,591)|
|Profit/(Loss) for the Year||(1,847,742)||(3,140,336)|
|Basic Loss Per Share||(0.02)||(0.02)|
Annual revenue amounted to 163,871 for the gaming business, with a further £27,494 generated via its publishing business. The company had 20,914 player registrations during the year, with 7,002 wagering players and 698 depositing players.
Total administrative expenses rose 46 per cent to £3.2m, including listing expenses of £0.7m. Salary expenses were up marginally to £1.0m, while marketing and selling expenses more than doubled to £0.5m. General administrative expenses climbed 40 per cent to £0.8m.
As a result, the company recorded a loss for the year to £3.1m, compared to a loss of £1.8m in the previous year.
24/7 Gaming said that while gross gaming revenue almost doubled in each quarter in 2013, the company’s directors consider that the gaming return from the direct marketing spend was “unsatisfactory” and recent changes in the marketing department and the way of executing the marketing strategy indicate that a better return can and should be achieved.
Enhancements are being made to the branding of the group's products including the completed acquisition of the domain name 247casino.com, while steps have also been taken to tighten the company’s financial control and marketing spend. The board is also reviewing possible acquisition opportunities.
The company’s board considers that the changes in marketing, as well as changes to the management team, will improve the revenue and efficiency of the group and that it will allow the company to take advantage of the continuing growth in online and mobile gaming.
Earlier this year in January, 24/7 Gaming announced that in the light of its trading results, its directors were seeking additional funding to strengthen working capital. The company raised approximately £500,000 and the conversion of certain outstanding debt. As a result of this further investment, the board has been able to increase the group's investment in HTML 5 platforms.
As at December 31st the company held cash and cash equivalents of £2.7m compared to £1.2m the previous year.
Shares in 24/7 Gaming Group Holdings plc (AIM:247) were trading up 3.60 per cent at 2.60 pence per share in London Monday following the announcement.