GameAccount Network reports £2.6m pre-tax loss
Slowdown in system sales and slow progress on US regulation contributes to 39% drop in revenues
GameAccount Network remains upbeat about future prospects despite posting a full-year pre-tax loss of £2.6m, down from a profit of £1.6m in 2013.
Revenues for the 12 months ended 31 December 2014 were down 39% to £7.5m on 2013’s figure, however the platform and content supplier did report underlying revenues had grown 20% to £6.5m when systems sales, which brought in £6.9m in 2013 but only £1m last year, were excluded.
CEO Dermot Smurfit said the losses were the result of a “period of investment” by GameAccount, adding “that performance to date in 2015 is in line with our expectations”.
The firm pointed towards the successful launch of its Simulated Gaming platform and the delivery of a platform for Betfair’s New Jersey operation as reasons for optimism.
“Our full year revenue from gaming system sales was down year-on-year however we are actively engaging with multiple potential system buyers and we remain confident in our ability to continue to deliver on sales of our gaming system to casino equipment manufacturers although the timing of such sales remains uncertain,” Smurfit said.
He also added that the lack of progress on US regulation had contributed to the disappointing results, but believes the company is well placed for the future.
“Real-money Internet gaming in New Jersey and the pace of regulation in the US market has been slower than expected but we are confident in the long-term prospects for real-money gaming in the years ahead,” Smurfit added.
GameAccount’s shares dropped sharply after the results announcement, but had begun to rebound this morning on news that the firm’s chairman, David O’Reilly, had bought stock, reaching 45.40p at the time of writing.