Sportingbet plc is pleased to announce its continued partnership with Boss Media AB ("Boss"), one of the World's leading suppliers of systems for digitally distributed gaming software.
As part of a three year casino and poker contract, Sportingbet will continue to use Boss software to power both its casino and poker offerings for its European based websites. In addition, Sportingbet will combine its Paradise Poker players with the Boss network further enhancing the player liquidity pool. Sportingbet will retain the Paradsie poker brand and migrate all Paradise players to Boss in due course.
During the three months ended 31 October 2006, rake from the Boss powered European poker platform amo9unted to £4.3m, up 72% year on year. The Paradise poker platform generated rake from non-US platers of £3.8m, up 9% year on year.
Daily active real money players on both systems amount to approximately 6,500 each, however the greater liquidity on th Boss system, as it is a shared network with other Boss licencees, means yield per active player are approx. 60% higher from the Boss players as compared to Paradise Poker players. By combining all poker players in one network we aim to maximise yields from all players.
The combination of the two poker businesses will provide some cost savings for the Group, however this will be offset to some extent by the loss of revenue that may occur as a result of migrating players from one platform to another.
The redundancy of the Group's Paradise Poker software will result in further exceptional cost of approximately £55m representing the write-off of the remaining carrying value of this asset and associated costs.
As previously indictaed, Sportingbet will announce its results for the second quarter on 28 February 2007.
Andrew McIver, Sportingbet group Chief Executive, said:
"This deal combines all out poker players in one destination, maximising liquidity whilst reducing the complexity of running two seperate poker operations. The addition of the Paradise Poker players to the Boss poker network will make the Boss network on of the largest in Europe."
Johan Berg, Boss Media Chief Executive Officer said:
"The partnership with Sportingbet is material to the success of Boss Media and is one very important reason that we are one of the leading providers of e-Gaming software. The stregthened partmership will enable the two companies to work together to bring second to none e-Gaming products to the market."
Sportingbet Plc (020 7184 1800)
Andrew McIver, Group Chief Executive
Simon Gregory, Director of Business Development
George Hudson (020 7903 0669)
Libby Young (020 7903 0609)