Progress report for the 1st quarter 2014

Progress report for the 1st quarter 2014 – 1st January to 31th March 2014

Consolidated Group Financials for the period January to March 2014:

• Turnover: 241,808 Euro
• Loss after taxation: -249,923 Euro
• Earnings per share: -0.006 Euro
• Number of shares by 31 March 2014: 42,214,957
• Financials for the period January to March 2014 – Angler Gaming plc:
• Turnover: nil Euro
• Loss after taxation: -89,009 Euro
• Earnings per share: -0.002 Euro
• Number of shares by 31 March 2014: 42,214,957

This report has not been reviewed by the Company’s auditors.

COMMENTS FOR Q1 2014

• Deposits overall for Q1 2014 were up by 78% compared to Q4 2013
• Gross Game Win increased by around 20% over the previous period (Q4 2013) while Net Game Win increased by 54% – due to a higher game win overall and the deployment of a lower relative bonus cost structure.
• Deposits less withdrawals were up by 183% over the previous period (Q4 2013)
• The hold percentages for all deposits during these periods stabilised at around 30%
• Partial relocation of staff from Curacao to Malta
• CasinoExtra increased marketing efforts throughout Q1 and early results are encouraging.

COMMENTS FROM HANS DAHLGREN, CEO STARFISH MEDIA:
Activities in Q1 increased and the financial results improved. We are all thrilled about our strong growth in the past few months, in particular about attaining a break-even point for the month of March. However, a month with great game win will always be followed by a month of high costs for games suppliers and affiliates, so additional funding from the parent company will still be required for April to cover those additional costs. With CasinoExtra starting to grow and the proprietary brands delivering relatively good results, the future is starting to look quite a lot brighter.

COMMENTS FROM MICHAEL BENNETT, CEO ANGLER GAMING:
As our Chairman clearly identified with his remarks in the Q4 reports for 2012 and 2013 the company has not progressed entirely in the manner envisaged. From the outset, a clearly unrealistic timeframe coupled with over-optimistic financial projections – as shown in the original business plan – meant that the performance of our subsidiary – Starfish – was always likely to fall short of the expectations engendered by the Betsson Memorandum, and so it proved to be. It then transpired that in 2013 we encountered an even more difficult trading environment than was envisaged. Various obstacles and delays, mostly out of our control but which were clearly identified and reported, restricted our progress and we saw a protracted growth in revenues. During this period costs continued to be tightly controlled and the company remained focused about its direction, strategies and commercial objectives. Despite the slow beginnings, even for a “startup”, we continued to endorse our stated belief that the original projection, that the company would move into a positive cash flow position during the year 2014, could still be achieved. So where are we now with that ambition, having completed the first quarter of 2014? In June 2013 the introduction of “Live-streaming” of real casino play slowly but steadily generated a positive impact and allowed us to penetrate into new markets and find new players. However, this product did not start to produce significant results until December 2013, since which time it has continued to contribute to the overall upturn in deposits. In January and February the requests for funding from Starfish fell dramatically each month, by 5% and 21% respectively against 2013 funding levels. This was underpinned by a steady financial growth. Total funding requests for Q1 2014 were €175,421 compared to €307,202 in Q1 2013 March was Starfish’s best ever month for deposits, just over €189,000, and we also saw a widening gap between deposits and withdrawals, despite some big winners in February. Deposits overall for Q1 2014 were up by 63% compared to Q3 2013 and the hold percentages for all deposits during these periods stabilised at 30%. These combined factors contributed to the increase in Starfish’s cash-flow and reduced their dependency on Angler to the point where in March the funding request was Zero. “CasinoExtra”- the highly anticipated B2B brand that we had been trying to launch for several months – generated 7% of all deposits in February – without the benefit of a full suite of games to offer players and with a zero marketing spend in that month. It went fully live on 6th March with a limited Marketing Budget. Initial turnover figures were in line with our expectations. To summarise, after enduring a difficult trading and financial scenario for eighteen months since the launch of the Starfish operations, the subsidiary is now enjoying positive cash flow and has reduced its financial dependency upon Angler in each month of Q1 2014 Going forward, we will need to balance the lessening dependency of Starfish upon Angler with the recognition that Starfish will need to employ more staff if we are to continue the growth and development of the business.

Annual General Meeting:
We have had to change the original planned date of 27th June 2014. It will now be held on the 20th June 2014, at 10-00am. Venue: Best Western Kom Hotel, Döbelnsgatan 17, 11140 Stockholm Michael Bennett – CEO

COMMENTS FROM DAVID GRAY, CHAIRMAN, ANGLER GAMING:
As previously reported the timetable for the growth and development of our brands is behind schedule. However, the first quarter results show steadily improving revenues which have already reduced the dependence of our subsidiaries on the parent, Angler Gaming PLC. Plans are in hand to reorganise our team and relocate some key personnel to Malta as we believe this will prove to be a dynamic move which will provide a stronger platform for our team to develop and implement new marketing strategies and focus upon brand development. It will also facilitate a more “hands-on” approach that will allow us to guide the operation into a position where it will be better placed to capitalise on future expansion opportunities for Angler. To underpin this process by increasing the financial backing required the Board decided to offer a Rights Issue to raise additional funding. By the time this Q1 report is published the required notices will have already been sent out and the EGM to vote on the Rights Issue will have already been held in Stockholm. The relevant Press Releases and Memorandum will have been posted on the websites of Aktie Torget and Angler Gaming PLC David Gray – Chairman

SNAPSHOT OF Q2.

• Negotiate with more potential B2B partners
• Add an additional product vertical to our player offerings
• Re-organise part of the operational team to work in Malta
• Recruitment of key personnel as required to sustain expansion and growth
• Assist our existing B2B partner to grow
• EGM for Rights Issue to be held in Stockholm 8th April 2014 Date for Q2 2014 report will be 30th July 2014. Malta, 29th April 2014 Board of Directors of Angler Gaming PLC

Enquiries: Michael Bennett, CEO[email protected]