Livermore Regulatory News (LIV)

24 Jan 2006 07:04

Empire Online Limited24 January 2006 Empire Online Limited Pre-Close Trading Update Strong and Accelerating growth in New Businesses • Number of new real money player signups were 49,788 in Q4 2005. • Net Gaming Revenue of $22.5 million in Q4 2005. • Company re-iterates confidence in $37 million pretax profit forecast for 2006 from all gaming platforms excluding Empire Poker. • Strong current trading at Noble Poker, with revenue increasing by 50% in the first three weeks of 2006 following the initial integration of casino games with the poker platform. • Cost per acquisition of new real money players has been maintained at the lower end of the normal range at $225 (Q3 2005 : $236). Empire Online Limited (the "Company" or "Empire Online"), a leading onlinegaming network and provider of marketing services to the online gaming industry,today provides the following trading update for the fourth quarter of 2005. During the fourth quarter of 2005 the Company has increased the marketing of itsClub Dice and Noble Poker platforms which has in turn delivered a rapidlyaccelerating rate of new player sign ups. Trading at Noble Poker has beenespecially strong so far in Q1 2006 following the initial integration of casinogames within the poker platform. Further game play enhancements are anticipatedin the near future. Q4 Trading Performance Q4 has seen rapid growth in the platforms recently acquired by the Company; theClub Dice suite of casinos and Noble Poker. In aggregate, Empire Online sawtotal real money new player signups across all platforms growing by 49,788. Thecompany is particularly pleased in this performance as it comes in a quarterwhen Empire Poker's rate of new player signups and active player base wasadversely impacted by PartyGaming separating its own skin from the system sharedby Empire Poker.com and by the departure of Coral Eurobet from the sharedtables. Trading highlights for Q4 : • Number of new real money players across all gaming platforms excluding Empire Poker has risen by 32,419 for Q4 2005, which represents an increase of 23% over Q3 2005. The number of new real money players across all gaming platforms increased by 49,788, which represents a decline of 6% on Q3 2005 .Non-US players accounted for over 44% of all new real money signups in Q4 2005. • Total Company net gaming revenue for Q4 2005 was $22.5 million (Q4 2004 : 22.0 million; Q3 2005: $31.4 million). Net gaming revenues across all gaming platforms excluding Empire Poker in Q4 2005 was $12.4 million, an increase of 41% on Q3 2005. • Total Company Casino revenue of $11.2 million (Q4 2004: $6.0 million; Q3 2005: $ 8.4 million). • Total Company Poker revenue of $11.3 million (Q4 2004: $ 16.0 million; Q3 2005: $23.0 million). • Estimated net operating profit before non-recurring exceptional items for Q4 2005 of approximately $8.5 million (Q4 2004: $12.8 million; Q3 2005: $16.1 million) despite spending $2.5 million on player bonuses at Empire Poker to help stabilise the system. • Cost per acquisition of new real money players in Q4 2005 has been maintained at the lower end of the normal range at $225 (Q3 2005 : $236). Key Performance Indicators (KPI's) _______________ Q4 '05 Q3 '05 Change Q4 '04 Change_______________ % % (1) Number of New Real Money Players acquired Poker 30,108 37,570 (20%) 31,719 (5%)Casino 19,680 15,578 26% 10,848 81%Total 49,788 53,148 (6%) 42,567 17% (2) Number of Active Players (a) Poker 123,006 126,644 (3%) 71,466 72%Casino 42,304 44,253 (4%) 32,711 29%Total 165,310 170,897 (3%) 104,177 59% (3) Average Active Players per Day Poker 15,382 19,030 (19%) 11,570 33%Casino 2,912 2,749 6% 1,421 105%Total 18,294 21,779 (16%) 12,991 41% (4) Poker Active Player days Poker 1.42m 1.75m (19%) 1.06m 33% (5) Yield per raked day Poker $15.69 $21.57 (27%) $22.63 (31%) (a) Number of Active Players is defined as those who have played for real moneyin the preceding 90 days. Empire Poker Update As the company reported on the 10th October 2005 in its Q3 Trading Update,PartyGaming separated its poker platform from that of its 'skins' including 'Empire Poker.com'. Furthermore, on 11th November 2005, PartyGaming confirmedthat it had reached commercial agreement with its remaining skins, other than 'Empire Poker.com'. In consequence, PartyPoker .com players and Coral Eurobetplayers no longer play on shared tables with Empire Poker.com players and PartyPoker's other skins. Full Year Guidance The Company expects to return profits before non-recurring exceptional items inexcess of $50 million for the full year 2005. The Company re-iterates itsconfidence in achieving profits of at least $37 million for 2006 from all gamingplatforms excluding Empire Poker. At present, it is too early to determine whereprofits from Empire Poker will settle for 2006 and is dependent on the outcomeof ongoing litigation. The company will take an exceptional charge in 2005 to cover non recurring itemswhich are principally associated with costs incurred and an estimate of costswhich will be incurred in relation to the on going litigation againstPartyGaming plc. Non recurring costs relating to the aborted transactions withSportingbet plc and PartyGaming plc, IPO expenses, amortisation of share optionsand impairment of intangible goodwill will also be included within this charge. Current Trading The company has seen continued strong trading across all its new platforms sincethe beginning of the new financial year 2006. In the first three weeks up to20th January, the company continues to see real money new player signups growingat around 500 per day. Commenting on today's results, Noam Lanir, CEO, said "I am delighted in theperformance of our new platforms, which demonstrate the strength of ourmarketing skills and builds on strategic acquisitions we made in Q3 2005. It istoo early to tell how full year results at Empire Poker will turn out, but theCompany has built a solid, fast growing business, that will deliver strong andsustainable growth in the future" For further information: Empire Online Limited +357 (2) 5 847 700 Noam Lanir, Chief Executive Officer Andrew Burns, Chief Financial Officer Andrew Burnett Citigate Dewe Rogerson +44 (0) 20 7638 9571 Simon Rigby Sarah Gestetner Ged Brumby This information is provided by RNS The company news service from the London Stock Exchange