RNS Number:6614H
New Media Lottery Services PLC
15 August 2006
15 AUGUST 2006
NEW MEDIA LOTTERY SERVICES PLC
("NMLS" or "the Company")
(AIM:NMLS)
UNAUDITED PRELIMINARY RESULTS
FOR THE YEAR ENDED 30 APRIL 2006
The Board of New Media Lottery Services PLC, the AIM traded supplier and white
label operator of lottery systems and games for government sanctioned lottery
programs and charities, today announces its maiden preliminary results for the
year ended 30 April 2006.
KEY POINTS
* Successfully launched an internet bingo site for Rehab Lotteries, in Ireland;
* By the end of the period the Bingo site created Euro1,680,663 in site sales;
and
* Sales for the site from May through July 2006 were Euro1,730,868.
BUSINESS HIGHLIGHTS
* Placing and admission to AIM on 17 March 2006, raising #1.8 million
(Euro 2.6 million) at 50p per share;
* Implemented a new games platform for Inspired Broadcast Networks Itbox
terminals for test market deployment in September 2006;
* Completed development of a multi-language white label lottery gaming system;
and
* Introduced new games to the Brazilian State Lottery website, with active
marketing to start in September.
Commenting on today's announcement, Lord Mancroft, non-executive chairman, said:
"The foundations of the business are all now in place. We have the right
products and a strong pipeline of contracts with properly licensed lotteries
throughout our target markets of Latin America and Europe. We are well
positioned for long term growth."
Commenting on today's announcement, John Carson, CEO, said: "I am delighted with
the progress we have made in Ireland. Although our marketing spend has been
limited, our sales growth is strong and our acquisition costs are below the
industry average. This is because Rehab is a government sanctioned charity
lottery and this enables us to secure favourable advertising rates and a good
percentage of free promotion. Rehab is also an established and trusted brand
in Ireland. We believe we have positioned our client and ourselves for long
term sales growth and revenue generation.
"We are extremely comfortable with our strategy of contracting with government
sanctioned licensed lottery holders. The government sanction protects us from
regulatory uncertainties and contract length gives us time to properly develop
these markets and maximize returns."
---ends---
Enquiries:
New Media Lottery Services PLC (001) 540 437 1688
John Carson
www.nmlsinc.com
Bishopsgate Communications Ltd 020 7430 1600
Maxine Barnes 07860 489 571
Scott Robertson
www.bishopsgatecommunications.com
Chairman's statement
I am pleased to present New Media Lottery Services plc's maiden preliminary
results for the period ended 30 April 2006 following our admission to AIM in
March 2006. These have been prepared using merger accounting principles and
reflect a full year's results with comparative data.
We have made considerable progress this year and our performance is in line with
our expectations.
As a reminder, NMLS provides and operates white label lottery gaming platforms
to a number of International Lottery programs including charities, sports
associations and state lottery organisations. Unlike many internet gaming
companies, NMLS only works with legitimate Government sanctioned Lottery
Programs. It does not market to players in jurisdictions with regulatory
uncertainties such as North America.
Over the past few years members of the NMLS group have invested considerable
time and money in developing a dedicated online software platform for use by
lotteries. This system complies with lottery rules and standards for deployment
via internet, kiosk and mobile channels.
In Ireland, NMLS operates two internet sites for the Government licensed Rehab
Charity. One is a video lottery site and the other is a multi-player bingo site.
To date NMLS has focused primarily on marketing and developing the bingo site
and has seen strong growth since the launch of the site on 14 November 2005.
Between 14 November 2005 and April 30 2006 NMLS invested approximately Euro153,000
in initial branding and marketing activities. By the end of the period, the
Bingo site had created Euro1,680,663 in site sales pre-win. Gross sales for the
site from May through July 2006 were Euro1,730,868 with minimal marketing spend.
We also proved our customer acquisition cost model. Various media costs were
heavily discounted for the benefit of Rehab Lotteries. In addition, we received
a significant amount of free promotion in the Irish media. According to our
contract with Rehab Lotteries all marketing costs are recouped by NMLS before
revenue splits and our operating costs are accordingly stated net of expense
recuperation. Later this year NMLS intends to fully integrate the customer
accounts on the video lottery site and the bingo site and begin cross selling to
and marketing of the video lottery site.
NMLS has also completed initial testing for our game deployment on the Inspired
Gaming systems. Inspired Broadcast Networks ("Inspired") has over 10,000 digital
entertainment devices located within pubs in the UK. These devices are well
suited to sell video lottery products and the Gaming Regulations in the UK have
been revised to allow sales of lottery products on these types of devices. The
final amended agreement with Inspired Broadcast Networks was signed in October
of 2005, but implementation was delayed because both NMLS and Inspired had been
focused on their respective IPOs on AIM. Progress has resumed and we are now
targeting deployment in Ireland in September, followed by the UK in early 2007.
In Brazil as part of a Joint Venture, we operate a lottery site on behalf of the
Para State Lottery. We have test marketed this site to establish the local
gaming preferences. Based on these results, we have added a number of games
specifically designed to appeal to Brazilian players. We will launch a new
marketing programme in early autumn to properly develop this market.
Since our IPO in March the management of NMLS has been actively negotiating
additional lottery contracts in target markets. Over the next few months we
expect to announce that we have completed a number of new contracts and will be
launching these in quick succession.
Lord B. Mancroft
Chairman
Profit and loss account for the year ended 30 April 2006
2006 2005
Unaudited Unaudited
Euro Euro
Administrative expenses 614,285 260,761
Operating loss 1,130,071 260,071
Loss on ordinary activities before taxation 1,130,071 260,071
Taxation on loss on ordinary activities - -
Loss on ordinary activities after taxation 1,130,071 260,071
Basic and diluted (loss) per share (Cent) (4.62)
All results are derived from continuing operations.
There are no recognised gains and losses other than those shown in the
profit and loss account above.
Balance sheet at 30 April 2006
Unaudited Unaudited
2006 2005
Euro Euro
Assets
Non-Current assets
Intangible assets 78,767 -
Property, plant & equipment 33,364 24,524
_______ _______
112,131 24,524
Current assets
Trade & other receivables 244,714 219
Cash and cash equivalents 1,763,359 2,190
_______ _______
2,008,073 2,409
_______ _______
Total assets 2,120,204 26,933
_______ _______
Equity & Liabilities
Equity attributable to equity holders of the parent
Issued share capital 238,130 449
Share premium 3,619,414 1,984,138
Other reserves 539,377 -
Retained Earnings (4,097,888) (2,967,817)
_______ _______
Total equity 299,033 (983,230)
_______ _______
Current liabilities
Trade and other payables 511,970 142,134
Non-Current liabilities
Other liabilities 1,309,201 868,029
_______ _______
Total Liabilities 1,821,171 1,010,163
_______ _______
Total equity and liabilities 2,120,204 26,933
_______ _______
Consolidated Cash Flow Statement for the period ended 30 April 2006
Unaudited Unaudited
2006 2005
Euro Euro
Cash outflow from operating activities
Operating loss (1,130,071) (260,761)
Depreciation 11,139 15,287
Intangible Assets Amortised 997 -
Increase in Debtors (244,495) 3,723
Increase in creditors 811,008 111,697
_______ _______
Net cash outflow from operating activities (551,422) (130,054)
Cash flows from financing activities
Proceeds from the issue of shares 4,522,649 -
Transaction costs on the issue of shares (665,105) -
_______ _______
Net cash flows from financing activities 3,857,544 -
_______ _______
Cash flow from Investing Activities
Purchase of property, plant & equipment (19,979) (170)
Purchase of intangible assets (79,764) -
Shares issued on a merger of a subsidiary (1,445,210) -
_______ _______
Net Cash flow used in investing activities (1,544,953) (170)
_______ _______
Net increase / (decrease) in cash and
cash equivalents at 30th April 1,761,169 (130,224)
_______ _______
New Media Lottery Services plc
Notes forming part of the preliminary announcement for the year ended
30 April 2006
1 Accounting Policies and Basis of preparation
The financial information set out in this preliminary announcement has been
prepared under the historical cost convention and in accordance with applicable
accounting standards. The financial information has been prepared in accordance
with merger accounting principles.
2. Group operating loss
Group operating loss has been arrived at after charging the following amounts
(including the group's share of joint ventures accounted for on the basis of
proportionate consolidation):
Administration expenses Euro
Included in administrative expenses are:
- Foreign exchange gains and losses 110,321
- Depreciation 12,136
- Website Holding 63,637
- Advertising 96,552
- Consultancy fees 121,746
- Legal and professional 123,665
- Bank charges 81,671
3. Trade and other receivables (current) - Group
Unaudited Unaudited
2006 2005
Euro Euro
Trade debtors 43,715 -
Amounts owed by group undertakings 45,651 -
Other debtors 72,714 -
Called up share capital not paid 219 219
Prepayments and accrued income 82,415 -
_______ _______
244,714 219
4. Trade and other payables (current) - Group
Unaudited Unaudited
2006 2005
Euro Euro
Trade payables 259,369 -
Directors' accounts - 2,880
Accruals 252,601 139,254
_______ _______
511,970 1,010,163
_______ _______
5. Dividends
In line with the policy set out in the Company's AIM admission document, no
dividend is proposed to be paid.
Status of financial information
The financial information set out in this announcement does not constitute the
Company's statutory accounts for the years ended 30 April 2006. The statutory
accounts for the year ended 30 April 2006 will be finalised on the basis of the
financial information presented by the directors in this preliminary
announcement and will be delivered to the Registrar of Companies following the
Company's annual general meeting.
Annual Report and Accounts
Copies of the Company's Annual Report and Accounts are expected to be sent to
shareholders on or around September 1, 2006 and will be available to the
public, free of charge, from the Company's registered office at 51/52
Fitzwilliam Square, Dublin 2, Ireland for at least a month thereafter.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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