Financial report for Q2 2013

Angler Gaming plc: Half Year Report 2013

1st April to 30th June 2013 Angler Gaming PLC, reg. no. C55255, Malta

FINANCIALS FOR Q2 – Angler Gaming plc

• Turnover: 0 Euro
• Profit/Loss: -71,535 Euro
• Earnings per share: -0.0017 Euro
• Number of shares by 30 June 2013: 42,214,957

FINANCIALS FOR the period Jan to June 2013 – Angler Gaming plc

• Turnover: 0 Euro
• Profit/Loss: -162,249 Euro
• Earnings per share: -0.0038 Euro
• Number of shares by 30 June 2013: 42,214,957

CONSOLIDATED FINANCIALS FOR the period Jan to June 2013

• Turnover: 0 Euro
• Profit/Loss: -764,694 Euro
• Earnings per share: -1.0180 Euro
• Number of shares by 30 June 2013: 42,214,957

COMMENTS FOR Q2 2013

• First B2B brand “Chiply” successfully launched. Chiply has a multi-market strategy primarily for Europe and will mainly focus on paid advertisement through established and tested networks.
• Added additional languages for Lucky31
• Staff changes made to manage market diversity such as reducing Spanish Customer Support while recruiting staff for other languages
• Deposits steadily increasing but has been countered during the quarter through big wins which has increased withdrawals substantially
• Fraud tools implemented across the platform as the player base and thus risk exposure have increased
• General shift of strategy to focus on acquiring B2B brands rather than making larger investments to expand market share of in-house brands due to budget constraints
• Suspended activity in Argentina indefinitely due to difficulties in money management

COMMENTS FROM HANS DAHLGREN, CEO STARFISH MEDIA:

“During the second quarter we have seen a significant increase in activity, most of all through the launch of Lucky31. The distribution of deposits between the established CasinoEstrella and the more recently launched “Lucky31” has seen a steady swing in the trends. From being heavily biased towards CasinoEstrella the majority of deposits are now being received by Lucky31. This is to our advantage as the conversion rates on Lucky31 are substantially greater than those achieved in our South American markets. Thus far, the average conversion rate for Lucky31 has been on average 10 times better and the average deposit amounts 5 times better compared to CasinoEstrella. Generally speaking, the operating statistics are trending upwards but the actual growth rate is insufficient based on the in-house brands alone and although deposits are up, Starfish’s revenue is still behind projections. Additional cuts in costs would be difficult without risking a slowing down of the business which is why B2B expansion has become more and more important. Our first B2B brand partner (Chiply) has been busy planning marketing campaigns during June and will begin its marketing efforts starting July 1st.

COMMENTS FROM MICHAEL BENNETT, CEO ANGLER GAMING:

“At the Angler Gaming PLC Annual General Meeting held in Stockholm on 31st May 2013 the number of shareholders who attended, together with the number of shares they held or represented, was not sufficient in total to allow a vote on the motion to adopt the Share Option Scheme that was outlined in the Agenda for the AGM. Therefore we are calling an Extraordinary General Meeting, to be held in Malta, on 2nd August. Shareholders have the option to attend in person or to vote by proxy on the proposal to adopt the share option scheme. All details in this regard, together with the Agenda and proxy forms, may be found on the Angler Gaming page on the Aktie Torget website and also on our own Angler Gaming website www.anglergaming.com When Angler Gaming PLC was formed the proposed share option scheme was envisaged to become an integral part of the structure of the company, in order to be able to attract and retain top Senior Management, at both Operational and Board level. Shareholders are requested to review the proposal for the share option scheme and vote accordingly, either in person or by proxy.”

COMMENTS FROM DAVID GRAY, CHAIRMAN, ANGLER GAMING:

As can be seen from the comments of both Angler CEO Mike Bennett and Hans Dahlgren, Starfish CEO the company has been experiencing, for various reasons, difficulties in achieving bottom line profits. To facilitate a better understanding of the situation for shareholders we have included in this Quarterly report not only the Angler Accounts – which we are obliged to produce for the Q2 report by Aktie Torget rules and regulations – but have also included the Group Accounts for the half year. On a more positive note, as already identified in this report, the company is experiencing growth in volumes; continuing to diversify; looking for new products to offer our customers and actively seeking new partners to increase our revenue streams.

SNAPSHOT OF Q3

• Starfish will continue the strategy to work with more B2B partnerships, to expand our market penetration capability while minimising cost escalations
• Additional languages for Lucky31
• Bonus costs to be reduced on all sites through introduction of alternative offers
• Developing a mobile version of the platform with the goal to increase retention and player loyalty
• Evaluating the possibility of adding a sportsbook to the product offering Date for Q3 2013 report will be 15th of October 2013. Malta, 12th July 2013 Board of Directors of Angler Gaming PLC

Enquiries: Michael Bennett, CEO [email protected]