24hPoker AB (publ) issues interim report for period May to January 2005/2006
24hPoker AB reports continued strong sales growth for the period from May to January 2005/2006. During the third quarter, from November to January, revenues increased by 404 percent for Poker, compared with the corresponding period during the preceding year. The primary factor behind the positive trend is the extremely strong growth of the partners in 24hNetwork. Profit after tax for the third quarter improved to SEK 11.3 M (4.1).
- Net revenues for the third quarter amounted to SEK 92.3 M (27.3) and to SEK 194.5 M (55.4) for the period from May to January. - Poker reported strong growth during the entire third quarter, with an increase of 404%, compared with the corresponding period during the preceding year and 85% over the second quarter - The gaming surplus for the third quarter amounted to SEK 72.7 M (13.8) and to SEK 136.3 M (25.6) for the nine-month period from May to January - The gross margin was 41% (50) for the third quarter and 44% (38) for the May-January period. - Profit after tax amounted to SEK 11.3 M (4.1) for the third quarter and SEK 20.1 M (7.9) for the May-January period -Profit per share amounted to SEK 2.17 (0.78) for the third quarter and SEK 3.86 (1.53) for the first nine months Comments by Per Hildebrand, President of 24hPoker AB “The strong revenue growth that 24hPoker experienced during the greater part of 2005 continued during the third quarter. It is gratifying to note that we are succeeding in achieving strong growth combined with favorable profitability. The primary contributor to the strong trend is the continued excellent growth for partners in 24hNetwork (skins). During the period, 24hNetwork launched its own information website, and the concept began to be marketed internationally, after which a number of new partners were added. Interest in the product is extremely strong, since our solution gives players who want to market themselves in the gaming market the opportunity to establish a service at low cost within less than four weeks. 24hPoker is now making the move into casinos and clubs through exciting joint ventures in Russia and Ireland, where its stronger presence in physical environments frequented by many gaming enthusiasts will enable it to reach new target groups. During the coming periods, we also plan to intensify the marketing efforts focused on our own gaming site, 24hPoker.com. The marketing department, currently being expanded in Malta, is in the process of recruiting new personnel and plans to focus more intently on attracting new customers and retaining and developing the existing customer base. To date, a large proportion of available personnel have been engaged in promoting the rapid growth of 24hNetwork. During the period, B2B Poker consolidated its position as one of the most stable and fastest-growing poker platforms in the online gaming market. B2B Poker is currently the world’s tenth largest poker network. In February, 24hPoker acquired Unibet’s shareholding in B2B Poker, which makes 24hPoker the sole owner of the network and will enable it to continue expanding aggressively.” For further information, please contact: Per Hildebrand, President, tel: +46 8-564 88 464, e-mail: per.hildebrand@24hpoker.se Thord Norberg, CFO, tel: +46 8-564 88 475, e-mail: thord.norberg@24hpoker.se