Proactive Investors - Run By Investors For Investors

NetPlay's ITV Partnership Takes Shine Off Strong Rise in Revenues

NetPlay's ITV Partnership Takes Shine Off Strong Rise in Revenues

Interactive gaming company NetPlay TV reported an underlying improvement in profitability, but admitted its collaboration with ITV had not worked out the way envisaged.

The company reported a 21 per cent rise in first half revenues to £11.3 million, and said total casino income was up 73 per cent to £8.8 million in the six months June 30.

As a result the company posted pre-exceptional EBITDA of £740,000, up from £120,000 a year earlier.

However the company posted a loss before tax for the period of £7.9 million once exceptional items and impairments were factored into the calculation.

The group has a television partnership with Channel 5 and hoped to repeat the success story with ITV. 

“Unfortunately, the new soft gaming format did not perform in line with our expectations and has been a major cost to the company,” said chairman Clive Jones. 

“We have taken swift and decisive action and I am pleased to report the cost cutting exercise and the renewed focus on our proven "live" casino format is starting to show positive signs as we rationalise the business.”

The ITV trial comes to an end during November, and discussions with broadcaster are ongoing, as is the restructuring of the business, the NetPlay said. 

It will update shareholders on the outcome during the next quarter.  

The company’s core live casino business remains strong, and although July was impacted by a large numbers of winners, it returned to normal patterns in August and September.

 “Our business model is to deliver a great "live" gaming experience to our players; we have succeeded in doing this and today boast one of the largest "live" gaming businesses in the world,” the company said. 

“We use our terrestrial tele-shopping relationships to acquire new customers and our TV relationships allow us to work in an exclusive arrangement with broadcasters. We are able to fully explain our offering using the power of TV and as such have proven we can acquire a substantial number of quality high value players.”


View full NPT profile View Profile

Netplay TV Plc Timeline

February 02 2017
September 13 2016
January 14 2016

Related Articles

Mobile users holding phones up
September 05 2018
The mobile advertiser is placing itself at the forefront of the digital revolution as companies and brands increasingly look to the web as the next forefront of advertising
digital communications
September 25 2018
The digital communications firm reported an adjusted pre-tax profit of £15.1mln, up 26% on the same period a year ago, while net revenues rose 14% to £106.8mln
Lego ball
September 14 2018
The company's latest push is a joint venture agreement with US-based entertainment firm Three Six Zero, which has steered the careers of pop stars such as Calvin Harris

© Proactive Investors 2019

Proactive Investors 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