RNS Number:4019Q
New Media Lottery Services PLC
31 January 2007
31 JANUARY 2007
NEW MEDIA LOTTERY SERVICES PLC
("NMLS" or "the Company")
(Ticker:NMLS)
Interim Unaudited Results for the six months ended 31 October 2006 and
Trading Update
The Board of New Media Lottery Services PLC, the supplier and white label
operator of lottery systems and games for government sanctioned lottery programs
and charities, today announces its interim results for the six months ended 31
October 2006. The Company commenced trading on 14 November 2005 and was admitted
to AIM in March 2006.
KEY POINTS
* Strong current trading - anticipated to be profitable at the EBITDA level
in Q4 of calendar year 2007;
* Revenue up 335% to Euro174k (year to 30 April 2006: Euro40k);
* Client lottery website sales up 148% at Euro4.166m (year to 30 April 2006:
Euro1.681m); and
* Corresponding client player deposits up 163% at Euro302,000 (30 April 2006:
Euro115,000).
BUSINESS HIGHLIGHTS
* 10 year state lottery contract announced by NMLS in Arugua, Venezuela, to
offer a variety of lottery products and sports betting throughout the
country;
* Three year contract signed to market and utilise the Las Vegas Gaming Inc.
products within NMLS lottery programmes;
* Rehab Lottery Group represented the sole revenue generating programme
throughout the period;
* NMLS continues to pursue additional lottery opportunities and expects
to announce additional contracts throughout 2007; and
* Server-based back office systems and games developed, tested and
implemented with an accelerated roll out expected throughout 2007
Lord Mancroft, Non-Executive Chairman at NMLS, commented:
"The Company has made significant progress over the period and performance is in
line with our expectations. Current trading is strong and I anticipate NMLS to
be profitable at the EBITDA level in Q4 of calendar year 2007. I would like to
reiterate that NMLS does not market to players in jurisdictions with regulatory
uncertainties such as North America.
"The last year has been about proving our systems and models. NMLS stands ready
to accelerate its revenue generation based on our recent successes."
Commenting on the results, John Carson, Chief Executive Officer at NMLS, said:
"The second six month period after commencing our lottery sales programmes was a
period of dramatic sales growth and increased conversion of registrations into
depositing players. Our depositing player retention is high and consistently
over 80-90% of our deposits come from returning players.
"Rehab Lottery site sales continue to show strong growth patterns. Management
has proven its models and we intend to role out our programmes on an accelerated
basis."
---ends---
Enquiries:
New Media Lottery Services PLC (001) 540 437 1688
John Carson
www.nmlsplc.com
Bishopsgate Communications Ltd 020 7562 3350
Nick Rome
Fran Read
www.bishopsgatecommunications.com
Arbuthnot Securities 020 7012 2000
Nicholas Marsh
www.arbuthnotsecurities.co.uk
CHAIRMAN'S STATEMENT
I am pleased to present New Media Lottery Services' interim results for the
period ended 31 October 2006 following our admission to AIM in March 2006. The
Company has made significant progress over the period and performance is in line
with our expectations.
NMLS provides and operates white label lottery gaming platforms to a number of
International Lottery programmes including charities, sports associations and
state lottery organisations. Unlike many internet gaming companies, NMLS only
works with legitimate Government sanctioned Lottery Programmes. It does not
market to players in jurisdictions with regulatory uncertainties such as North
America.
Financials
Client site sales for the current period were Euro4.166m, compared to Euro1.681m for
the year to 30 April 2006. This represents a 148% increase in client site sales.
The resulting net revenue to the company for this period was Euro174k compared to
Euro40k for the year to 30 April 2006, an increase of 335% in company revenue.
Administrative expenses are Euro1.670m, compared to Euro1.089m for the year to 30
April 2006. The increase in administrative expenses is substantially due to a
change in the allocation of such expenses. Prior to March 2006, significant
administrative expenses were funded by the Company's U.S. parent company (New
Media Lottery Services, Inc.). From March 2006, the Company has funded all of
its administrative expenses.
The loss for the six months to October 31st 2006 is Euro1.562m (loss of Euro1.130m in
the year to April 2006).
Review and Current Prospects
The Company has made a series of developments over the period. Our software
development group has now developed, tested and implemented NMLS' server-based
back office systems and games. An accelerated roll-out is expected to take place
throughout 2007.
In October 2006 the Company announced the agreement of a 10 year state lottery
contract with Aragua Lottery, the Venezuelan state lottery programme. NMLS has
agreed to offer a variety of lottery and sports betting products throughout
Venezuela. In addition to mobile and Internet distribution, the contract allows
for Fixed Odds Betting Terminals and other terminal based distribution. Sales
are expected to commence in or before Q2 of calendar year 2007. NMLS had
previously identified Latin America as a region for growth and this latest
geographical addition to the NMLS reach will add to the Company's long term
revenue streams. As well as Ireland and Venezuela, NMLS holds additional
contracts in Brazil, Belize and Guatemala.
In November 2006 the Company secured a three year contract to market and utilise
Las Vegas Gaming Inc. ("LVGI") products within NMLS lottery programmes. LVGI, a
Nevada based operator, manufacturer and distributor of products for the gaming
industry, offers a variety of applications that will prove very attractive to
NMLS' lottery partners. The applications are Nevada Gaming Board compliant.
In addition, the Company has made a number of strategic hires over the period to
support the growth of the business. Tony Caporicci was appointed to lead the
Terminal Based Products Division and develop the technology for products such as
Interactive Lottery Terminals, Self Service Machines and related devices for
NMLS. Irene Gahan was appointed to manage the Irish Programme as the Company
continues to develop its operations in the country.
NMLS continues to leverage its investment in its software and expects to
announce additional contracts throughout 2007. I would like to take this
opportunity to thank our staff for their support over this busy period and look
forward to updating investors as to our further progress at the time of our
final results.
Lord B. Mancroft
Chairman
New Media Lottery Services Public Limited Company
Consolidated Income Statement
for the six months to 31st October 2006
Continuing Operations
Interim 6 Final YE Final YE
Months
Unaudited Audited Audited
Note Oct-06 Apr-06 Apr-05
Euro Euro Euro
Revenue 173,867 40,174 0
Administrative Expenses 7 -1,669,965 -1,088,572 -260,002
------------ -------- --------
Operating Loss -1,496,098 -1,048,398 -260,002
Finance Costs -65,734 -81,671 -757
------------ -------- --------
Loss on Ordinary Activities before
Taxation -1,561,832 -1,130,069 -260,759
Tax on Loss on Ordinary Activities 0 0 0
------------ -------- --------
Loss for the period attributable to
Equity Shareholders -1,561,832 -1,130,069 -260,759
============ ======== ========
Basic Loss per Ordinary Share -Euro0.06 -Euro0.05 -Euro5.81
============ ======== ========
Diluted Loss per Ordinary Share -Euro0.06 -Euro0.05 -Euro5.81
============ ======== ========
New Media Lottery Services Public Limited Company
Consolidated Balance Sheet
as at 31st October 2006
Interim 6 Final YE Final YE
Months
Unaudited Audited Audited
Oct-06 Apr-06 Apr-05
Euro Euro Euro
Note
Non-Current Assets
Property, Plant and Equipment 150,239 33,365 24,524
Intangible Assets 71,392 78,767 -
------------ ---------- -----------
221,631 112,132 24,524
------------ ---------- -----------
Current Assets
Trade and Other Receivables 373,096 244,716 219
Cash and Other Equivalents 207,307 1,763,358 2,190
------------ ---------- -----------
580,402 2,008,074 2,409
------------ ---------- -----------
Total Assets 802,033 2,120,205 26,933
============ ========== ===========
Equity and Liabilities
Equity attributable to equity holders
of the Parent
Issued Share Capital 3 240,621 238,130 449
Share Premium 4 3,771,935 3,619,414 1,063,615
Merger Reserve 5 539,377 539,377 -
Accumulated Loss 6 -5,659,717 -4,097,887 -2,047,294
------------ ---------- -----------
Total Equity
-1,107,784 299,034 -983,230
------------ ---------- -----------
Current Liabilities
Trade and Other Payables 600,616 511,971 142,133
Non-Current Liabilities
Other Liabilities 1,309,201 1,309,200 868,029
------------ ---------- -----------
Total Liabilities 1,909,817 1,821,171 1,010,163
------------ ---------- -----------
Total Equity and Liabilities 802,033 2,120,205 26,933
============ ========== ===========
New Media Lottery Services Public Limited Company
Consolidated Cash Flow Statement
for the six months ended 31st October 2006
Interim 6 Final YE Final YE
Months
Unaudited Audited Audited
Oct-06 Apr-06 Apr-05
Euro Euro Euro
Cash Outflow from Operating Activities
Operating Loss -1,496,098 -1,048,398 -260,005
Depreciation 10,546 11,139 15,287
Intangible Assets Amortised 7,375 997 0
Increase in debtors -128,377 -244,498 3,721
Increase in creditors 88,645 -78,945 111,699
------------ --------- --------
Net Cash Outflow from Operating
Activities -1,517,909 -1,359,705 -129,298
------------ --------- --------
Cashflow from Investing Activities
Purchase of Property, Plant and
Equipment -127,420 -19,979 -170
Purchase of Intangible Assets 0 -79,764 0
------------ --------- --------
Net Cashflow used in Investing
Activities -127,420 -99,743 -170
------------ --------- --------
Cashflows from Financing Activities
Proceeds from the Issue of Shares 155,012 2,658,191 0
Transaction Costs on the Issue of Shares 0 -665,105 0
Issue of Debentures 0 1,309,201 0
Finance Costs -65,734 -81,671 -756
------------ --------- --------
Net Cashflows from Financing
Activities 89,278 3,220,616 -756
------------ --------- --------
Net Increase / (decrease) in cash and
cash equivalents at 31st October -1,556,051 1,761,167 -130,224
Cash and cash equivalents at
beginning of period 1,763,357 2,190 132,414
------------ --------- --------
Cash and cash equivalents at end
of period 207,306 1,763,357 2,190
============ ========= ========
New Media Lottery Services Public Limited Company
Notes to the Consolidated Balance Sheet
as at 31st October 2006
1. Publication of Non-Statutory Accounts
The financial information set out in this interim statement, does not constitute
statutory accounts within the meaning of Section 240 of the Companies Act 1985.
The financial information for the full preceding period is based on the
statutory accounts for the year ended 30th April 2006. Those accounts, on which
the auditors issued an unqualified opinion, have been delivered to the registrar
of Companies. There are no comparatives for a preceding interim period as this
is the first interim period since the Groups listing.
2. Accounting policies
The interim financial information has been prepared on the basis of the
accounting policies set out in the Group's statutory accounts for the year ended
30th April 2006.
3. Share Capital
Authorised Equity GBP# GBP# GBP#
150,000,000 Ordinary Shares of GBP0.66667
pence each
1,000,000 1,000,000 1,000,000
============ ========== ==========
Allotted, called up and fully paid equity Euro Euro Euro
24,700,000 Ordinary Shares of GBP0.66667
pence each
(Apr 2006: 24,450,000, 2005: 20,205,150)
240,621 238,130 449
============ ========== ==========
Share Capital Movement
Opening Balance May 1st 2006 238,130
- 20th October 2006
Issue of 200,000 Ordinary Shares of
GBP 0.66667 pence each 1,993
- 20th October 2006
Issue of 50,000 Ordinary Shares of
GBP 0.66667 pence each 498
------------
Closing Balance October 31st 2006 240,621
============
On the 20th October 2006, 200,000 Ordinary Shares of GBP# 0.66667 pence each
were issued to Las Vegas Gaming Inc, (LVGI) a Nevada Corporation for GBP#
0.66667 pence each in consideration for the International rights to the 'Optima'
System being transferred to New Media Lottery Services Plc. The value of the
shares issued is Euro124,010.16, creating a share premium on this issue of Euro
122,017.
On the 20th October 2006, 50,000 Ordinary Shares of GBP# 0.66667 pence each were
issued to Tony Caporicci for GBP# 0.66667 pence each in consideration for
services rendered in arranging the International rights to the 'Optima' System
being transferred to New Media Lottery Services Plc. The value of the shares
issued are Euro31,002.54, creating a share premium on this issue of Euro 30,504. The
shares have been recognised as have the associated costs incurred in lieu of the
shares.
4. Share Premium
Opening Balance May 1st 2006 3,619,414
- 20th October 2006
Issue of 200,000 Ordinary Shares of
GBP 0.66667 pence each 122,017 (note 3)
- 20th October 2006
Issue of 50,000 Ordinary Shares of
GBP 0.66667 pence each 30,504 (note 3)
------------
Closing Balance October 31st 2006 3,771,935
============
5. Merger Reserve
Opening Balance May 1st 2006 539,377
No Movement
------------
Closing Balance October 31st 2006 539,377
============
6. Accumulated Reserves
Opening Balance May 1st 2006 -4,097,887
Interim Results - 6 months October 2006 -1,561,832
------------
Closing Balance October 31st 2006 -5,659,719
============
7. Administrative Expenses
Interim 6 Final YE Final YE
Months
Unaudited Audited Audited
Oct-06 Apr-06 Apr-05
Euro Euro Euro
Auditors Remuneration 68,500 55,000 0
Employee wages, salary and benefits 479,753 246,319 0
Directors Fees 44,698 59,500 0
Programming Costs 29,617 30,137 91,081
Other Administration Expenses 376,708 184,459 25,291
Foreign Exchange Gains and Losses 29,491 110,321 -37,179
Depreciation and Amortisation 17,921 12,136 15,287
Website Hosting 46,193 63,637 18,114
Advertising & Marketing 186,519 96,552 3,822
Consultancy Fees 131,553 121,746 104,701
Legal and Professional 151,739 105,607 38,886
Web Development 71,988 3,159 0
Market Expenses 35,285 0 0
------------ ---------- ----------
1,669,965 1,088,573 260,002
============ ========== ==========
The Company's administrative expenses appear to have increased
substantially during this six month period compared to the twelve months ended
30 April 2006 (the comparative period). The administrative expense increase is
substantially due to a change in the allocation of such expenses. Prior to the
17th March 2006, significant administrative expenses were paid by the Company's
U.S. parent company, named New Media Lottery Services, Inc., a Delaware
corporation. After the 17 March 2006, the Company began funding all of its
administrative expenses.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR OKKKQABKDADN
New Media (LSE:NMLS)
Historical Stock Chart
From Jun 2024 to Jul 2024
New Media (LSE:NMLS)
Historical Stock Chart
From Jul 2023 to Jul 2024
