New Media Lottery Services increased turnover by 10 times but losses also jumped.
NMLS generates most of its revenues from the Rehab charity lottery in Ireland although it also owns a one-third share of the software used by three relationship sites in Brazil. It has also linked up with Aim-quoted Inspired Gaming to look at other opportunities.
Lottery sales on client sites rose 523% to €10.6m in the year to April 2007. NMLS generated revenues of €438,000, against €40,000 the previous year. The loss increased from €1.1m to €2.68m as NMLS built up its overhead base ahead of expansion.
NMLS has a 10 year deal with the Aragua Lottery in Venezuela. It is on course to launch its lottery systems in the country in October. The company is filing a US patent on a prepaid mobile application it intends to offer in Venezuela.
There was €129,000 of cash in the balance sheet at the end of April, which is less than one month’s average cash outflow in the previous 12 month period. NMLS has rich backers who are willing to put up money to help the group but a share issue will probably be required at some point. That is probably the reason behind the weakness in the shares.
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