Interactive TV gaming company NetPlay TV (LON:NPT) has revealed that it turned a corner, into profitability, during the first six months of this year.
The group endured a tough 2010 in which it had to restructure its business, after a new gaming format failed to live up to expectations. Netplay subsequently refocused its business on its core ‘live’ casino products.
During the first half, ended 30 June 2011, NetPlay’s revenues came in at £10.59 million, which is in-line with the same period last year.
However earnings (EBITDA) and profits were much improved.
The group reported earnings of £1.69 million which represents a significant turnaround compared with the 0.84 million loss in the first half of last year. Similarly pre-tax profit came in a £0.37 million, compared to a £9.8 million loss in H1 2010.
"We are very pleased to report a strong first half,” said chairman Clive Jones.
“The return to profitability, cash generation and growth in our KPIs are a clear illustration of the benefits the restructuring has brought, and is a testament to the strength of the team that we now have in place.
"We are looking to the future with confidence and continue to explore opportunities to leverage our industry expertise and TV production facilities to facilitate further expansion in both the UK and overseas."
Zooming in on the group’s activities NetPlay revealed that total casino revenues were up 10.7 percent to £9.1 million and the number of active casino users has increased by 13.9 per cent to 35,689.
Crucially sign-ups for cahino players has increased by more than 20 per cent to 40,134 during the period.
Speaking about the group’s trading in the current period chief executive Charles Butler said: “The second half of the year has started well with July revenue significantly ahead of July last year. The group continues to see the benefits of the restructuring and focus on the core live casino product with strong KPIs and continued investment in effective marketing.”
He added: “With the UK casino business now performing well, the group is exploring opportunities for geographical expansion in Italy and potentially other territories such as Spain and the Netherlands pending legislation and a workable tax regime. This will allow the Group to leverage on its existing knowledge, cost base and TV production facilities.
“The group believes that with this continued performance expected in the second half, a strong set of results will be achieved for the full year.”