15 July 2014 – Q2 KPIs
The company has released an update on trading in the second quarter. There was a 38% increase in new depositing players to 20,607 (Q2 2013: 14,906) and a 33% increase in quarterly active depositing players to 37,691 (Q2 2013: 28,261). There was a more modest 5% increase in total net revenue to £7.4m (Q2 2013: £7.1m). More than half of all new customer registrations have come from mobile or tablet, reflecting wider trends.
Point of Consumption Tax has also been covered and this is weighing on sentiment. The company is cost cutting in order to be ready for the introduction of this tax in December 2014. Whilst this is a concern, the share price looks too low in our view and we rate the shares as a BUY.