Zattikka PLC Trading Update (1424W)

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RNS Number : 1424W

Zattikka PLC

23 January 2013

 
 For immediate release   23 January 2013 
 

ZATTIKKA PLC

('Zattikka' or the 'Group')

Trading Update

Trading in line with revised market expectations

Zattikka, the online games entertainment group, today provides the following update on trading and operational initiatives. The Board is pleased to report that full year trading is expected to be in line with market expectations as stated in November 2012. Key growth areas of the business ended the year on a positive trend with the Board confirming that pro forma revenue bookings for the year ended 31 December 2012 will be within the range of $10.0m to $11.0m.

Operational summary

Hattrick

The Hattrick business continues to build on the progress created in the second half of 2012. Over a proforma 12 month period, after a disappointing first half, post-acquisition H2 revenue bookings were more than 20% higher than in H1. This trend is a result of marketing campaigns stimulating both repeat and new subscriptions of the "Supporter" product, combined with continuing product improvements.

The focus for Hattrick remainson continued product innovation coupled with geographic expansion.

Game Development

In November 2012, Zattikka announced that a new studio, Spellgun was successfully split out from Concept Art House. The release by Spellgun of the mobile and tablet versions of Legacy of a Thousand Sunsis expected later in the first quarter of 2013. The original Facebook and web based game experienced its best performing months during the latter half of 2012, creating a significant potential audience for the new mobile version of game. Sneaky Games continues to focus on the major new franchise property, under the working name "Hero Wars".

The Group looks forward to launching both of these games in Q1 2013.

Publishing Services

Concept Art House ("CAH") revenues in the fourth quarter of 2012 returned to expected levels, stimulated by new management and an increased penetration into selected international markets, especially Japan. Building on new clients previously announced, new contracts have been signed with NgMoco for Transformers Legends and Hellfire with contract extensions also agreed with DeNa, for its game Ninja Royale.

Management also plans to extend the existing art and game design services to include in-game analytics, via Zattikka's SNAP technology and cross promotional services via the newly created Zattikka Games Network. The Board believes the expansion of publishing services will be an important revenue stream in the future.

Outlook

Progress since the November 2012 trading update has been in line with market expectations, with improving performances from Concept Art House and Hattrick. The full year results for Zattikka will be released in April 2013.

Ends

For further information, please contact:

 
Zattikka 
Mark Opzoomer, Chief Executive Officer   [phone] 
Rob Gorle, Chief Financial Officer 
 Canaccord Genuity Limited 
  Nominated Adviser and Broker 
  Simon Bridges 
  Peter Stewart                           [phone] 
 Buchanan 
  Jeremy Garcia 
  Clare Akhurst                           [phone] 
 

About Zattikka:

Zattikka plc is a digital games entertainment group, developing games and providing publishing services in this sector of the rapidly evolving multi-billion dollar global digital entertainment market. Zattikka is executing a clear vision to become a large scale, diverse games publisher through strategic acquisitions and by accelerating organic growth. Headquartered in the United Kingdom with shares listed on London's AIM (ZATT), Zattikka games studios include Sneaky Games (USA), Spellgun (USA and China) and Hattrick (Europe). Business to business services include high quality game art and design services provided by Concept Art House (USA and China) and in-game analytics insights through its bespoke SNAP technology platform developed in London.

For more information visit www.zattikka.com

This information is provided by RNS

The company news service from the London Stock Exchange

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