Livermore Regulatory News (LIV)

27 Apr 2006 07:08

Empire Online Limited27 April 2006 Empire Online Limited Q1 2006 Trading Update Sustained growth in core business. • Number of new real money player signups for Q1 increased by 44,217 (Q4 2005: 49,788). • Net Gaming Revenue of $21.1m in Q1 (Q4 2005: $22.5m). • Cost per acquisition of new real money players has been maintained at the lower end of the normal range at $222 (Q4 2005: $225). • Unaudited earnings before interest tax depreciation and amortisation (EBITDA) and exceptional non-recurring items for Q1 of $8.5m (Q4 2005:$8.8m) • Geographic diversification with over 50% of new real money players driven from outside of the USA. • Settlement of litigation provides $250m for complementary acquisitions. 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 first quarter of 2006. Trading highlights for Q1 : • Number of new real money players across all gaming platforms excluding Empire Poker has risen by 36,242 for Q1 2006, which represents an increase of 12% over Q4 2005. The number of new real money players across all gaming platforms increased by 44,217. Non-US players accounted for over 50% of all new real money signups in Q1 2006. • Total Company net gaming revenue for Q1 2006 was $21.1m (Q4 2005: 22.5m; Q1 2005: $24.4m). Net gaming revenues across all gaming platforms excluding Empire Poker for Q1 2006 were $17.6m, an increase of 42% on Q4 2005. • Total Company Casino revenue of $15.3m (Q4 2005: $11.2m; Q1 2005: $5.6m). • Total Company Poker revenue of $5.8m (Q4 2005: $11.3m; Q1 2005: $18.8m). • Estimated earnings before interest taxation depreciation and amortisation (EBITDA) and non-recurring exceptional items of approximately $8.5m (Q4 2005: $8.8m; Q1 2005: $12.0m) • Cost per acquisition of new real money players has been maintained at the lower end of the normal range at $222 (Q4 2005 : $225). Key Performance Indicators (KPI's) Q1 '06 Q4 '05 Change Q1 '05 Change % %(1) Number of New Real Money Players acquiredPoker 21,288 30,108 (29%) 37,094 (43%)Casino 22,929 19,680 17% 11,808 94%Total 44,217 49,788 (11%) 48,902 (10%) (2) Number of Active Players (a)Poker 93,347 123,006 (24%) 91,549 2%Casino 51,801 42,304 22% 30,107 72%Total 145,148 165,310 (12%) 121,656 19% (3) Average Active Players per DayPoker 14,355 15,382 (7%) 15,219 (6%)Casino 3,868 2,912 33% 1,463 164%Total 18,223 18,294 0% 16,682 9% (4) Poker Active Player daysPoker 0.83m 1.42m (41%) 1.37m (40%) (a) Number of Active Players is defined as those who have played for real moneyin the preceding 90 days . Outlook and current trading In February 2006 the dispute arising from PartyGaming plc's split of theEmpirePoker platform was successfully concluded. The settlement included apayment of $250m to Empire Online. Empire Online's remaining online platforms have continued to grow throughout Q42005 and through 2006 to date in line with management expectations. This growthwill continue to form the bedrock of the Company's continuing development. The Company now has the financial strength to diversify both its product andgeographical exposure outside of the USA through value enhancing acquisitions.The Company had $259m of cash on its balance sheet at the end of Q1. Empire Online is actively seeking to acquire complementary gaming businesses insuch areas as sports betting, skill-based gaming and soft-gaming niches such asbingo. In addition, the company is exploring further poker and casinoacquisitions. The creation of a more diversified gaming group will be further enhanced by theintroduction of shared wallet technology and more effective cross-marketingbetween complementary gaming channels. Expanding into fast growing geographicregions where Empire currently has little presence through the acquisitions ofwell developed local brands will further increase Empire's footprint Commenting on today's trading update, Noam Lanir, CEO, said "I am delighted toreport on such strong growth in our core businesses. Empire Online is in astrong and stable position and I look forward to this year being one of furtherprogress for the company through the continued growth of our existing businessand additional growth from the an acquisition programme which will diversify theCompany's product and geographic reach." For further information: Empire Online Limited +357 25 847 700Noam Lanir, Chief Executive OfficerAndrew Burns, Chief Financial OfficerAndrew Burnett Citigate Dewe Rogerson +44 (0) 20 7638 9571Simon RigbySarah GestetnerGed Brumby This information is provided by RNS The company news service from the London Stock Exchange