TIDMGAME
GameAccount Network plc (GAN)
2015 Half Year Results
LSE: GAME ISE: GAME
London & Dublin | 28 September, 2015: GameAccount Network
plc ("GAN" or the "Group"), a leading developer and supplier of
enterprise-level B2B gaming software and online gaming content,
announces its results for the six months ended 30 June 2015.
Operational Overview and Current Developments
-- Launched Simulated GamingT in Pennsylvania with Parx Casino (Greenwood
Gaming & Entertainment Inc) and in Australia launched
Club8Casino.com.au, our first launch outside of the US market,
with a
consortium of licensed Queensland gaming venue operators
-- Signed two (2) further Simulated GamingTM clients in the
US; San Manuel in California, our first West Coast operator
and
Maryland Live! Casino in Maryland which has an online
free-to-play
presence launched in 2012 which will be upgraded to Simulated
GamingTM
-- In excess of one million Simulated GamingTM active player
days representing an increase of 285% year on year
-- Gross Purchases from Simulated Gaming have exceeded $2.8m, an increase
of over 330%
-- Post-period end, active player days have accelerated materially in Q3
with the commencement of the seasonally strong period and
scale
acquisition marketing for selected US casino clients. In excess
of
825,000 active player days have been recorded in Q3 to September
25,
2015 representing an increase of 420% year on year
-- CEO has relocated to Las Vegas, Nevada with his family demonstrating
commitment to expedite delivery of simulated gaming opportunity
in the
US
-- Launch of our Casual Mobile Gaming Platform with initial title
Foxwoods Solitaire QuestTM to complement our Simulated
GamingTM product offering
-- Further enhanced Simulated Gaming product offering with the launch of
real time slot tournament capability, upgraded mobile app,
improved
social features, leading casino baccarat variant EZ BACCARAT®
and
additional slots titles from Konami Gaming, Incredible
Technologies,
Gamomat and High Flyer Games
-- Rebranded to GAN and enhanced US presence through expanded Nevada
Office supporting CEO's recent relocation
-- Continued investment in US and UK infrastructure: Technical,
Licensing, People & Patents
Financial Overview
-- Gross Income has increased to GBP13.4m (2014: GBP13.2m)
-- Net Revenue of GBP2.9m (2014: GBP4.2m)
-- Underlying Net Revenue decreased 6% to GBP2.9m (2014: GBP3.1m excluding
the impact of system sales in 2014 of GBP1.1m)
-- Clean Ebitda1 loss of GBP1.5m (2014: loss of GBP0.4m)
-- Underlying Clean Ebitda1 loss remains unchanged at GBP1.5m
excluding the impact of system sales in 2014
-- Net Revenue attributable to Simulated Gaming has increased
significantly to GBP1.2m (2014: GBP0.2m)
-- Loss before tax of GBP2.6m (2014: Loss before tax of GBP0.9m) and loss per
share of GBP0.05 (2014 loss per share GBP0.02)
-- Cash and cash equivalents at the end of the period of GBP7.6m
-- Balance Sheet remains solid with Net Assets at the end of the period
of GBP12.6m
Dermot Smurfit, CEO of GAN commented:
"The first half of 2015 has continued the period of investment
for GAN, and, performance is in line with our plan.
We have continued to focus on building a substantial recurring
revenue base to offset this investment and achieve future
profitability. In particular, Simulated GamingTM revenues have
grown substantially year on year by over GBP1.0m and now represent
over 41% of overall revenue. In addition, we have seen encouraging
growth in sustainable market revenues in both New Jersey in the US
and Italy in Europe. The rapid growth in Simulated GamingTM
revenues is particularly important as we believe over time they
will substantially compensate for the slower than expected pace of
the development of real-money Internet gaming in the US.
We have seen continued growth from our Simulated GamingTM
operators launched in 2014 and have also benefited in the first
half of this year from the launch of two new operators; Parx Casino
in the key state of Pennsylvania and Club8Casino.com.au in
Australia - our first Simulated GamingTM market outside of our core
US market. In addition we have signed two additional major US
casino operators who we believe will significantly grow our revenue
base over time. San Manuel casino represents our first West Coast
operator and widens our footprint in the US market, an important
strategic objective, and Maryland Live! Casino in Maryland provides
us with an established online free-to-play presence that we will
monetise upon migration.We remain excited by the growth
characteristics of Simulated GamingTM and have already seen a major
uplift in player activity as we begin to experience the onset of
the seasonally strong Autumn/Fall period and the commencement of
scale acquisition marketing for selected casino clients.
In addition we have experienced further growth in our
sustainable real money gaming markets both in New Jersey in the US
and in Italy in our European market. This growth is expected to
continue for the rest of the year.
As the numbers illustrate our investment in the business
continues. In line with the growth in Simulated GamingTM reveunes
we have refocused our underlying investment in our internet gaming
system toward additional Simulated GamingTM product features and
functionality, not least the ability to play in real time slots
tournaments but also in our registration process which places our
clients on a level playing field with social casino operators. At
the same time we have continued to build out our slot content
offering through the integration and launch of third party games on
our Simulated GamingTM platform such as the recently announced
partnership with Net Ent.
Our financial results continue to be impacted by delays in
securing additional system sales but we are actively engaged with
multiple casino equipment manufacturers and remain confident in our
ability to complete a sale either in the fourth quarter of this
year or early in 2016."
Notes
1. Clean EBITDA is a non GAAP company specific measure and excludes
interest, tax, depreciation, amortisation, share
based payment expense and other items which the directors
consider to be non-recurring and one time in nature
Note regarding forward-looking statements
This announcement includes forward-looking statements, including
statements concerning current expectations about future financial
performance and economic and market conditions which GAN believes
are reasonable. However, these statements are neither promises nor
guarantees, but are subject to risks and uncertainties that could
cause actual results to differ materially from those
anticipated.
For further information please contact:
GAN FTI Consulting
Dermot Smurfit Mark Kenny/Jonathan Neilan
Chief Executive Officer
+44 (0) 20 7292 6262 +353 1 6633686
dsmurfit@GAN.com gameaccount@fticonsulting.com
Davy
John Frain / Roland French
+353 1 679 6363
Half Year Results Conference Call Details
The GAN management team will host a conference call for analysts
& institutional investors at 08.00 BST (03.00 EST).
Please use the following dial in numbers:
UK/International Participants: +44 203 139 4830
US Participants: +1 718 873 9077
Ireland Participants: +353 1 696 8154
Participant Pin Code: 49243897#
The Half Year Results Press Release and Presentation is
available to download from the website, www.GAN.com
GameAccount Network plc
FINANCIAL REVIEW
Summary
Gross income of GBP13.4m for the six months ended 30 June 2015
represents an increase of GBP0.2m compared to the comparative
period ended 30 June 2014. Net revenue for the six months ended 30
June 2015 was GBP2.9m compared to GBP4.2m for the six months ended
30 June 2014. The results for the first half of 2014 benefited from
the recognition of gross income, net revenue and clean EBITDA of
GBP1.1m associated with the contingent final payment of a material
system sale completed in 2013. Excluding the impact of revenue from
this system sale, underlying net revenues of GBP2.9m in 2015 are
GBP0.2m less than those recorded in the first half of 2014. Clean
EBITDA loss of GBP1.5m is GBP1.1m lower than prior year period
clean EBITDA loss of GBP0.4m. On an underlying basis, excluding the
impact of system sale revenues recorded in the comparative period,
clean EBITDA loss remains unchanged against the comparative period
loss of GBP1.5m. Loss before and after taxation of GBP2.6m for the
current period compared to a Loss before and after taxation of
GBP0.9m (2014: GBP2.0m loss adjusted for impact of system sale) in
the comparative period.
The Group remains focussed on building a substantial recurring
revenue base through the expansion of our Simulated GamingTM
customer base and real money gaming revenues in sustainable
markets. The Group defines sustainable markets for real money
gaming as those in which the Group holds an inherent competitive
advantage; currently Italy in the European market and New Jersey in
the US market. In order to best meet this opportunity the Group has
continued to invest heavily in the underlying Internet Gaming
System capability and related B2B marketing opportunities in
relevant markets. The Group believes this investment is necessary
in order to ensure that it continues to be in position to
capitalise on the immediate Simulated GamingTM opportunity in the
US and other markets.
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Cash and cash equivalents at the end of the period was GBP7.6m
compared to GBP14.0m at the end of the comparative period and
GBP10.8m for the year ended 31 December 2014. Net Assets at 30 June
2015 of GBP12.6m compared to GBP16.9m at 30 June 2014 and GBP15.2m
for the year ended 31 December 2014.
Revenue
Gross Income of GBP13.4m is GBP0.2m higher than recorded in the
six months ended 30 June 2014. Excluding the impact of the system
sale in the six month period ended 30 June 2014 of GBP1.1m,
underlying adjusted Gross Income increased by 10% in 2015.
Net revenue for the period of GBP2.9m is GBP1.3m less than the
comparative six month period. Net revenue for the six months ended
30 June 2014 was boosted by the recognition of GBP1.1m in revenue
related to the final payment of a material system sale completed in
2013. On an underlying basis, net revenue excluding the impact of
this system sale decreased by 6% from GBP3.1m to GBP2.9m. Net
revenue generated from our Simulated GamingTM business in the US
and Australian markets grew from GBP0.2m in the first half of 2014
to GBP1.2m for the first six months of 2015 and now accounts for
41% of overall net revenues compared to 5% in the prior period (6%
adjusted for the impact of system sale revenue in 2014).
The Group categorises B2B net revenue into two distinct revenue
streams; Revenue share and other revenue (recurring in nature) and
Game and Platform Development (one time and primarily non-recurring
in nature). Recurring revenues are principally generated in the
real money gaming markets of Italy in Europe and New Jersey in the
US and by Simulated GamingTM markets in the US and Australia. B2B
Recurring revenues have increased by 43% from GBP1.4m to GBP2.0m in
the current period. This growth has been primarily due to increases
in Simulated GamingTM revenues and by increases in sustainable
market real money gaming revenues partially offset by reduced real
money gaming revenues from other real money gaming markets.
Game and Platform Development revenues have fallen by GBP1.8m,
from GBP2.5m to GBP0.7m. Underlying Game and Platform Development
revenues, adjusted for the impact of system sale revenue, have
fallen by 51% from GBP1.4m to GBP0.7m. This reduction has been
primarily due to the impact of reduced game development revenue and
one time contractual revenues associated with the real money gaming
market of New Jersey in the US.
Expenses
Distribution costs include royalties payable to third parties,
B2B and B2C direct marketing expenditure and the direct costs of
operating the hardware platforms deployed across the business which
in total have increased from GBP1.6m to GBP2.4m for the six months
to 30 June 2015. The increase is due primarily to increased
royalties payable to providers of third party games content as a
result of significantly increased Simulated GamingTM revenues in
the US and increased real money gaming revenues generated through
our Italian operator customer base and the impact of increased
amortisation charges consequent to our increased underlying
investment in our Internet Gaming System.
Administration expenses include the costs of personnel and
related expenditure for both the London and Nevada offices. Total
administrative expenses have decreased from GBP3.5m in 2014 to
GBP3.1m in the period ended 30 June 2015 primarily due to increased
capitalisation of technical and development related headcount in
the UK office.
EBITDA
Clean EBITDA is a non GAAP company specific measure and excludes
interest, tax, depreciation, amortisation, share based payment
expense and other items which the directors consider to be
non-recurring and one time in nature. The Directors regard Clean
EBITDA as a reliable measure of profits that is not unduly
subjective.
Clean EBITDA loss for the six month period ended 30 June 2015 of
GBP1.5m is GBP1.1m lower than the comparative figure (2014 loss of
GBP0.4m). This predominantly reflects the impact of system sale
revenue recorded in the comparative period of GBP1.1m. Adjusting
for the impact of this system sale revenue, Clean EBITDA loss for
the six month period ended 30 June 2015 remains unchanged at
GBP1.5m against the comparative period.
Outlook
B2B revenue share and other revenue is expected to show
continued growth for the second half of the year. Revenues from the
two Simulated GamingTM operators launched in 2014 are continuing to
grow in line with plan while the underlying performance of the two
new Simulated GamingTM operators launched in Pennsylvania (Parx
Casino) and Australia (Club8 Casino) in March 2015 is progressing
slower than expected but we are confident that this will
improve.
The growth opportunity in Simulated GamingTM remains
significant. There is strong demand for our product which is
reflected in the pipeline of prospective customers with a number of
exciting deals expected to be completed in the coming quarters.
The Group will launch two further US operators in the fourth
quarter; San Manuel in California and Maryland Live! Casino in
Maryland though the deployments are taking place later in the year
than expected. The Group expects both launches to gain momentum up
to year end and to provide strong growth in Simulated GamingTM
revenue for 2016.
Real money gaming revenue from sustainable markets in the US and
Italy is expected to grow further and will continue to offset
declines in other real money gaming markets. Growth in Italy is
expected to be generated through continued strengthening of our
content offering and by the launch of three additional operators in
Q4.
B2B game and platform development revenues are not expected to
grow in the second half of the year primarily as a result of a
shift in market focus towards the sale of game content as an
integrated component of an overall internet gaming system sale.
The sale of internet gaming systems remains a focus of our
overall business strategy. The Group continues to engage in
advanced discussions regarding a system sale and is targeting the
completion of a sale in either the fourth quarter of 2015 or in
early 2016.
The Group believes that the significant investment made since
IPO in headcount, the underlying internet gaming system and sales
and marketing has positioned the Group to capitalise on the
opportunities presented by our Simulated GamingTM business and real
money gaming businesses in sustainable markets. This level of
investment is not expected to increase significantly during the
remainder of the year. The Group is focussed primarily on the
Simulated GamingTM product in order to build a high growth
recurring revenue base that will enable the Group to offset this
investment and achieve sustainable profitability.
Cashflow
The cash balance at 30 June 2015 was GBP7.6m (2014: GBP14.0m)
representing a decrease of GBP6.4m from 30 June 2014. During the
six month period the Group has continued to invest in its Internet
Gaming System deployment capability and product enhancement and
cash has decreased by GBP3.2m from the year-end balance at 31
December 2014 (GBP10.8m). In addition to operating cash outflow
before movements in working capital and taxation of GBP1.5m cash
outflows during the period include GBP2.0m in incremental
investment in intangible fixed assets primarily related to the
capitalisation of internal development time and GBP0.4m invested in
fixed assets offset by positive working capital movements of
GBP0.7m.
KEY PERFORMANCE INDICATORS
The performance of the group during the year demonstrates the
group's strategy to both consolidate the core gaming content
distribution business in Europe and to grow through higher margin
revenue opportunities including IGS sales and Game Development in
regulated markets. The directors regard clean earnings before
interest, tax, depreciation, amortisation, share based payment
expense and other items ("Clean EBITDA") as a reliable measure of
profits and the group's key performance indicators are set out
below:
H1 2015 H1 2014
GBP000 GBP000
Gross income from gaming operations and services 13,383 13,231
Net revenue 2,892 4,166
Clean EBITDA (1,476) (444)
Net assets 12,632 16,860
Cash and cash equivalents 7,622 14,033
The Board also monitor customer related KPIs, including number
of active players, revenue by partner, business segment
profitability and geographic split of turnover.
GameAccount Network Plc
For the period ended 30 June 2015
Consolidated statement of comprehensive income
Notes Six months ended Year ended
Six months ended 30 June 2014 31 December
30 June 2015 GBP'000 2014
GBP000 Unaudited GBP'000
Unaudited Audited
Continuing
Operations
Gross income 13,383 13,231 26,123
from gaming
operations and
services
Net revenues 3 2,892 4,166 7,528
Distribution (2,363) (1,623) (3,728)
costs
Administrative (3,110) (3,493) (6,469)
expenses
Total operating (5,473) (5,116) (10,197)
costs
Clean EBITDA (1,476) (444) (1,425)
Depreciation (211) (171) (360)
Amortisation of (701) (271) (777)
intangible
assets
Exceptional 5 (175) (29) (67)
costs
Employee (18) (35) (40)
share-based
payment charge
Operating (loss) (2,581) (950) (2,669)
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Finance income 19 42 67
(Loss) before (2,562) (908) (2,602)
taxation
Tax charge - - -
Loss for the (2,602)
period (2,562) (908)
attributable
to owners of
the Group
and
total
comprehensive
income for
the period
Basic earnings
per share
attributable to
owners of the
parent
during the
period
Basic (pence) 9 (4.58) (1.63) (4.66)
Diluted (pence) 9 (4.58) (1.63) (4.66)
Clean EBITDA is a non GAAP company specific measure and excludes
interest, tax, depreciation, amortisation, share based payment
expenses and other items which the directors consider to be
non-recurring and one time in nature. Where not explicitly
mentioned, EBITDA refers to EBITDA from continuing operations.
GameAccount Network Plc
For the period ended 30 June 2015
Consolidated statement of financial position
Notes At 30 June At 30 June At 31 December
2015GBP'000 2014GBP'000 2014GBP'000
Unaudited Unaudited Audited
Non-current assets
Intangible assets 4,354 1,671 3,026
Property, plant 963 648 805
and equipment
Deferred tax asset 510 510 510
5,827 2,829 4,341
Current assets
Trade and other 6 2,589 3,484 2,823
receivables
Cash and cash 7,622 14,033 10,776
equivalents
10,211 17,517 13,599
Total assets 16,038 20,346 17,940
Current liabilities
Trade and other payables 7 3,406 3,486 2,764
Total liabilities 3,406 3,486 2,764
Equity attributable
to equity
holders of parent
Share capital 8 559 558 559
Share premium account 14,574 14,570 14,574
Retained earnings (2,501) 1,732 43
12,632 16,860 15,176
Total equity and 16,038 20,346 17,940
liabilities
GameAccount Network Plc
For the period ended 30 June 2015
Consolidated statement of changes in equity
Share Share Retained Total
capital premium earnings equity
GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2014 557 14,528 2,605 17,690
Loss and total comprehensive - - (908) (908)
income for the period
Employee share-based payment charge - - 35 35
Issue of equity share capital 1 42 - 43
At 30 June 2014 (Unaudited) 558 14,570 1,732 16,860
Loss and total comprehensive - - (1,694) (1,694)
income for the period
Employee share-based payment charge - - 5 5
Issue of equity share capital 1 4 - 5
At 31 December 2014 559 14,574 43 15,176
Loss and total comprehensive - - (2,562) (2,562)
income for the period
Employee share-based payment charge - - 18 18
At 30 June 2015 (Unaudited) 559 14,574 (2,501) 12,632
The following describes the nature and purpose of each reserve
within equity:
Share Capital Represents the nominal value of shares
allotted, called up and fully paid
Share Premium Represents the amount subscribed for share
capital in excess of nominal value
Retained Earnings Represents the cumulative net
gains and losses recognised
in the consolidated statement
of comprehensive income
GameAccount Network Plc
For the period ended 30 June 2015
Consolidated statement of cash flows
Period ended Period ended Year ended 31
30 June 2015GBP'000 30 June 2014GBP'000 December
Unaudited Unaudited 2014GBP'000
Audited
Cash flow from
operating
activities
Loss for the (2,562) (908) (2,602)
period
before taxation
Adjustments for:
Amortisation of 701 271 777
intangible
assets
Depreciation 211 171 360
of property,
plant
and equipment
Share based 18 35 40
payment
expense
Net finance income (19) (42) (67)
Foreign exchange 102 153 41
Operating cash (1,549) (320) (1,451)
flow
before movement
in working capital
and taxation
Decrease/(Increase) 196 (891) (187)
in trade
and
other receivables
Increase/(Decrease) 656 (466) (1,214)
in trade
and other payables
Taxation - 40 85
Net cash flows (697) (1,637) (2,767)
from
operations
Cash flow from
investing
activities
Interest received 19 42 67
Purchase of (2,029) (1,030) (2,892)
intangible
fixed assets
Purchases of (369) (222) (568)
property,
plant
and equipment
Net cash used (2,379) (1,210) (3,393)
in investing
activities
Cash flow from
financing
activities
Net proceeds - 43 48
on issue
of shares
Net cash generated - 43 48
from
financing
activities
Net decrease (3,076) (2,804) (6,112)
in cash
and
cash equivalents
Cash and cash 10,776 16,895 16,895
equivalents
at beginning
of period
Effect of foreign (78) (58) (7)
exchange
rate changes
Cash and cash 7,622 14,033 10,776
equivalents
at end of period
GameAccount Network Plc
For the period ended 30 June 2015
Notes to the financial statements
1.Basis of preparation and accounting policies
The financial information in this document has been prepared in
accordance with the recognition and measurement requirements of
International Financial Reporting Standards, International
Accounting Standards and interpretations (collectively, "IFRS")
issued by the International Accounting Standards Board (IASB) as
adopted by the European Union ("adopted IFRSs").
The financial information for the period ended 30 June 2015 does
not constitute the full statutory accounts for that period. The
Annual Report and Financial Statements for 2014 have been filed
with the Registrar of Companies. The Independent Auditors' Report
on the Annual Report and Financial Statements for 2014 was
unqualified, did not draw attention to any matters by way of
emphasis, and did not contain a statement under 498(2) or 498(3) of
the Companies Act 2006.
This interim report, which has neither been audited nor reviewed
by independent auditors, was approved by the board of directors on
25 September 2015. The financial information in this interim report
has been prepared in accordance with the recognition and
measurement requirements of International Financial Reporting
Standards as adopted for use in the EU (IFRSs). The accounting
policies applied by the Group in this financial information are the
same as those applied by the Group in its financial statements for
the year ended 31 December 2014 and which will form the basis of
the 2015 financial statements.
Adoption of new and revised standards
In the current period the Group has adopted all of the new and
revised standards and interpretations issued by the IASB and the
International Financial Reporting Interpretations Committee (IFRIC)
of the IASB, as they have been adopted by the European Union, that
are relevant to its operations and effective for accounting years
beginning on 1 January 2015. None of the new standards adopted had
a material impact on the Financial Statements of the Group.
New standards, amendments to standards and interpretations have
been issued but are not effective (and in some cases had not yet
been adopted by the EU) for the financial year beginning 1 January
2015. These have not been early adopted and the Directors are still
considering the potential impact of IFRS15: Revenue from Contracts
with customers but do not expect that the adoption of other
standards will have a material impact on the Financial Statements
of the Group in future years.
2.Judgements and estimates
The preparation of interim financial statements in conformity
with IFRSs requires management to make judgements, estimates and
assumptions that affect the application of accounting policies and
the reported amounts of assets and liabilities, income and
expenses. Actual results may differ from these estimates.
In preparing these condensed consolidated interim financial
statements, the significant judgements made by management in
applying the Group's accounting policies and the key sources of
estimation uncertainty were consistent with those that applied to
the consolidated financial statements as at and for the year ended
31 December 2014.
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The risks and uncertainties and significant estimates and
judgements faced by the Group have not changed significantly since
the 2014 Annual Report was published and are not expected to change
significantly during the remaining six months of the financial
year.
GameAccount Network Plc
For the period ended 30 June 2015
Notes to the financial statements (continued)
3.Net revenue
Period ended Period ended Year ended
30 June 30 June 31 December
2015 2014 2014
GBP'000 GBP'000 GBP'000
Unaudited Unaudited Audited
B2C 242 319 678
B2B
-Game and platform 660 2,450 3,946
development
-Revenue share and 1,990 1,397 2,904
other revenue
Total B2B 2,650 3,847 6,850
2,892 4,166 7,528
4.Segmental information
Information reported to the Group's Chief Executive, the
strategic chief operating decision-maker, for the purposes of
resource allocation and assessment of the Group's segmental
performance is primarily focused on the origination of the revenue
stream. The Group's principal reportable segments under IFRS 8 are
therefore as follows:
* Business to business ("B2B")
* Business to consumer ("B2C")
Segment revenues and results
The following is an analysis of the Group's revenue and results
by reportable segment.
Period ended 30 June 2015 (Unaudited) B2C B2B Total
GBP'000 GBP'000 GBP'000
Net revenue 242 2,650 2,892
Distribution costs (excluding depreciation (290) (1,161) (1,451)
and amortisation)
Segment result (48) 1,489 1,441
Administration expenses (3,110)
Depreciation (211)
Amortisation of intangible assets (701)
Finance income 19
Loss before taxation (2,562)
Taxation -
Loss for the period after taxation (2,562)
GameAccount Network Plc
For the period ended 30 June 2015
Notes to the financial statements (continued)
Period ended 30 June 2014 (Unaudited) B2C B2B Total
GBP'000 GBP'000 GBP'000
Net revenue 319 3,847 4,166
Distribution costs (excluding depreciation (465) (716) (1,181)
and amortisation)
Segment result (146) 3,131 2,985
Administration expenses (3,493)
Depreciation (171)
Amortisation of intangible assets (271)
Finance income 42
Loss before taxation (908)
Taxation -
Loss for the period after taxation (908)
Year ended 31 December 2014 (Audited) B2C B2B Total
GBP'000 GBP'000 GBP'000
Net revenue 678 6,850 7,528
Distribution costs (excluding depreciation (1,051) (1,540) (2,591)
and amortisation)
Segment result (373) 5,310 4,937
Administration expenses (6,469)
Depreciation (360)
Amortisation of intangible assets (777)
Finance income 67
Loss before taxation (2,602)
Taxation -
Loss for the year after taxation (2,602)
The accounting policies of the reportable segments follow the
same policies as described in note 1. Segment result represents the
gross profit earned by each segment without allocation of the share
of administration costs including Directors' salaries, finance
costs and income tax expense. This is the measure reported to the
Group's Chief Executive for the purpose of resource allocation and
assessment of segment performance.
Administration expenses comprise principally the employment and
office costs incurred by the Group.
Segment assets and liabilities
Assets and liabilities are not separately analysed or reported
to the Group's Chief Executive and are not used to assist in
decisions surrounding resource allocation and assessment of segment
performance. As such, an analysis of segment and liabilities has
not been included in this financial information. All non-current
assets are located in Europe and USA.
GameAccount Network Plc
For the period ended 30 June 2015
Notes to the financial statements (continued)
Geographical analysis of revenues
This analysis is determined based upon the location of the legal
entity of the customer.
Period Period Year
ended ended ended
30 June 30 June 31 December
2015 2014 2014
GBP'000 GBP000 GBP'000
Unaudited Unaudited Audited
UK and Channel Islands 530 789 1,622
Italy 622 587 1,150
The Netherlands 60 - 490
USA 1,479 1,537 2,780
Australia 201 1,147 1,162
Rest of the World - 106 324
2,892 4,166 7,528
Geographical analysis of non-current assets
At At At
30 June 30 June 31 December
2015 2014 2014
GBP'000 GBP'000 GBP'000
Unaudited Unaudited Audited
UK and Channel Islands 5,094 2,017 3,583
USA 200 302 220
Italy 23 - 28
5,317 2,319 3,831
5. Exceptional costs
Period Period Year
ended ended ended
30 June 30 June 31 December
2015GBP'000 2014GBP'000 2014
Unaudited Unaudited GBP'000
Audited
Compensation for loss of office, 175 29 67
redundancy and compromise
costs, together with associated
legal expenses
175 29 67
GameAccount Network Plc
For the period ended 30 June 2015
Notes to the financial statements (continued)
6.Trade and other receivables
At At At
30 June 30 June2014GBP'000 31 December
2015 Unaudited 2014
GBP'000 GBP'000
Unaudited Audited
Trade receivables 1,122 1,942 1,501
Other receivables 660 264 700
Prepayments and accrued income 807 1,232 622
Corporation tax receivable - 46 -
2,589 3,484 2,823
Other receivables include amounts due from payment service
providers and VAT recoverable
7.Trade and other payables
At 30 June At 30 June At 31 December 2014GBP'000
2015GBP'000 2014GBP'000 Audited
Unaudited Unaudited
Amounts falling due
within one year
Trade payables 2,172 1,200 1,295
Other taxation and 171 151 188
social security
Other payables 276 539 369
Accruals and deferred 787 1,596 912
income
3,406 3,486 2,764
8.Share capital
At At At
30 June 30 June 31 December
2015 2014 2014
GBP'000 GBP'000 GBP'000
Unaudited Unaudited Audited
Ordinary shares 559 558 559
559 558 559
Issue of shares
No shares were issued during the period ended 30 June 2015
(2014: 216,480).
GameAccount Network Plc
For the period ended 30 June 2015
Notes to the financial statements (continued)
9.Earnings per share
Basic earnings per share is calculated by dividing the
profit/(loss) attributable to equity shareholders of the company by
the weighted average number of ordinary shares in issue during the
period.
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