Q1 2006 Trading Update

Empire Online Limited
27 April 2006



                             Empire Online Limited

                             Q1 2006 Trading Update


Sustained growth in core business.


  • Number of new real money player signups for Q1 increased by 44,217 (Q4
    2005: 49,788).

  • Net Gaming Revenue of $21.1m in Q1 (Q4 2005: $22.5m).

  • Cost per acquisition of new real money players has been maintained at the
    lower end of the normal range at $222 (Q4 2005: $225).

  • Unaudited earnings before interest tax depreciation and amortisation
    (EBITDA) and exceptional non-recurring items for Q1 of $8.5m (Q4 2005:$8.8m)

  • Geographic diversification with over 50% of new real money players driven
    from outside of the USA.

  • Settlement of litigation provides $250m for complementary acquisitions.



Empire Online Limited (the 'Company' or 'Empire Online'), a leading online
gaming network and provider of marketing services to the online gaming industry,
today provides the following trading update for the first quarter of 2006.

Trading highlights for Q1 :


  • Number of new real money players across all gaming platforms excluding
    Empire Poker has risen by 36,242 for Q1 2006, which represents an increase
    of 12% over Q4 2005. The number of new real money players across all gaming
    platforms increased by 44,217. Non-US players accounted for over 50% of all
    new real money signups in Q1 2006.

  • Total Company net gaming revenue for Q1 2006 was $21.1m (Q4 2005: 22.5m;
    Q1 2005: $24.4m). Net gaming revenues across all gaming platforms excluding
    Empire Poker for Q1 2006 were $17.6m, an  increase of 42% on Q4 2005.

  • Total Company Casino revenue of $15.3m (Q4 2005: $11.2m; Q1 2005: $5.6m).

  • Total Company Poker revenue of $5.8m (Q4 2005: $11.3m; Q1 2005: $18.8m).

  • Estimated earnings before interest taxation depreciation and amortisation
    (EBITDA) and non-recurring exceptional items of approximately $8.5m (Q4
    2005:  $8.8m; Q1 2005:  $12.0m)



  • Cost per acquisition of new real money players has been maintained at the
    lower end of the normal range at $222 (Q4 2005 : $225).



Key Performance Indicators (KPI's)

                                         Q1 '06     Q4 '05   Change   Q1 '05     Change
                                                              %                    %
(1) Number of New Real

Money Players acquired
Poker                                    21,288    30,108    (29%)      37,094    (43%)
Casino                                   22,929    19,680    17%        11,808    94%
Total                                    44,217    49,788    (11%)      48,902    (10%)


(2) Number of Active

Players (a)
Poker                                   93,347    123,006   (24%)       91,549      2%
Casino                                  51,801     42,304     22%       30,107     72%
Total                                  145,148    165,310   (12%)      121,656     19%


(3) Average Active

Players per Day
Poker                                   14,355     15,382    (7%)       15,219    (6%)
Casino                                   3,868      2,912     33%        1,463    164%
Total                                   18,223     18,294      0%       16,682      9%


(4) Poker Active

Player days
Poker                                    0.83m     1.42m     (41%)      1.37m     (40%)




(a) Number of Active Players is defined as those who have played for real money
in the preceding 90 days .





Outlook and current trading



In February 2006 the dispute arising from PartyGaming plc's split of the
EmpirePoker platform was successfully concluded. The settlement included a
payment of $250m to Empire Online.



Empire Online's remaining online platforms have continued to grow throughout Q4
2005 and through 2006 to date in line with management expectations. This growth
will continue to form the bedrock of the Company's continuing development.



The Company now has the financial strength to diversify both its product and
geographical exposure outside of the USA through value enhancing acquisitions.
The Company had $259m of cash on its balance sheet at the end of Q1.



Empire Online is actively seeking to acquire complementary gaming businesses in
such areas as sports betting, skill-based gaming and soft-gaming niches such as
bingo. In addition, the company is exploring further poker and casino
acquisitions.



The creation of a more diversified gaming group will be further enhanced by the
introduction of shared wallet technology and more effective cross-marketing
between complementary gaming channels. Expanding into fast growing geographic
regions where Empire currently has little presence through the acquisitions of
well developed local brands will further increase Empire's footprint



Commenting on today's trading update, Noam Lanir, CEO, said 'I am delighted to
report on such strong growth in our core businesses. Empire Online is in a
strong and stable position and I look forward to this year being one of further
progress for the company through the continued growth of our existing business
and additional growth from the an acquisition programme which will diversify the
Company's product and geographic reach.'









For further information:

Empire Online Limited                            [phone]
Noam Lanir, Chief Executive Officer
Andrew Burns, Chief Financial Officer
Andrew Burnett



Citigate Dewe Rogerson                           [phone]
Simon Rigby
Sarah Gestetner
Ged Brumby




                      This information is provided by RNS
            The company news service from the London Stock Exchange