Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Netplay TV rides out the storm caused by new tax

A new tax has inflicted some short term pain. However Netplay is sitting on almost £16mln of cash and has made an acquisition that will be immediately earnings enhancing.
Netplay TV rides out the storm caused by new tax
Spin the wheel: Things are starting to look up for Netplay.

---ADDS SHARE PRICE---

The progress of Netplay TV (LON:NPT) was derailed somewhat by the introduction of the new point of consumption tax that has been levied on all online gaming.

The company, which hosts roulette on ITV, Channel 5 and Sky, reported a year-on-year £1mln slide in adjusted pre-tax profit in the first half, which fell to £1.1mln.

By contrast, betting duties in the six months to June rose to £1.9mln from £400,000 in the second half of 2014 and £100,000 a year ago.

To mitigate the impact, the group cut its marketing expenses by 24% to £5.9mln, it also very excited by the £3.2mln acquisition of Otherside Inc, a digital marketing firm that has been bought to help increase its customer base.

Being profitable, the new business will also have a positive impact on earnings when the next results are published.

“We're excited about the opportunities that the acquisition of Otherside brings to the group initially providing a profitable revenue stream whilst adding to our capability in driving traffic to NetPlay's brands once the integration is complete,” said chief executive Bjarke Larsen.

“This alongside the group's solid marketing performance and opportunistic acquisition strategy supported by a robust cash position gives us confidence for the year ahead and beyond."

Netplay is currently sitting on £15.8mln of cash – which represents more than half the firm’s market capitalisation.

Despite the decline in profitability, the firm maintained its dividend at 0.22p a share.

The shares, up 35% in the year to date, marked time at 9.75p.

View full NPT profile View Profile

Netplay TV Plc Timeline

Article
February 02 2017
Article
September 13 2016
Newswire
January 14 2016

Related Articles

1505911280_social-media.jpg
September 20 2017
The Cello Health unit led the way as it grew organically and via the acquisition
marketing
November 15 2017
Next Fifteen Communications expects another strong performance in the second half
learning symbol on a keyboard
January 16 2017
The English language learning specialist is confident it can kick on in the coming year

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use