Interactive Gaming and Media company NetPlay (AIM: NPT) updated investors on their performance through the first half of the year. The highlights of the interim report showed that ‘Total Gross Bets’ increased by 31% across the group while ‘mobile gaming’ margin revenues increased 450% compared to the same period last year.
However earnings swung to a small loss of £0.1 million following the implementation of new media channels due to the subsequent investments in additional staff and associated costs. NetPlay has substantially increased the amount of media channels on which it operates during the period.
Key developments have allowed NetPlay to expand their operation considerably. According to NetPlay, regulatory changes implemented by Ofcom in May 2009 have allowed the Company to exploit their dominant market position. While July’s placing raised £12.8m to fund future growth of business.
Generally the update reflected NetPlay’s ongoing growth, with Daily depositing players increasing five-fold since launching on terrestrial TV in mid-September 2009. There is potential for this to extend further as NetPlay signed several broadcasting agreements during the period. With terrestrial and digital broadcasters including Channel Five, STV, Virgin Media Television, Freeview, Turner Media, and FreeSat.
NetPlay also expanded their existing operations into other digital media channels, through a deal with the software company Playtech Plc. Playtech provides distribution of NetPlay games via both Playtech's online customers and retail clients. NetPlay TV supply a number of 'live' games including: Live Roulette, Live Blackjack, Live Bingo and a Live Fixed odds draw. As part of the agreement, NetPlay TV will migrate all of its services onto the Playtech technology platform, this agreement is scheduled to run for a period of five years.
To complete NetPlay’s digital offering they have launched an interactive Mobile to TV product, a world first for an interactive gaming company. Meanwhile NetPlay’s existing mobile gaming business has experienced strong performance with margin revenues increasing 450% on a like-for-like basis.
NetPlay has also established a ‘land based’ gaming operation as it launched the first 'live' fixed odds betting terminal through Stanleybet International. Retail customers will be able to enjoy all of NetPlay TV's classic branded live table games, such as Live Roulette, on dedicated terminals in each betting shop, the company said in a statement. The Roll out will commence later this year.
NetPlay’s Chairman, Clive Jones commented on 2009’s successful expansion, stating;
“In 2009 NetPlayTV has successfully managed to transform itself from a small gaming business into a respected Interactive Media business. By signing new deals with some of the World's largest media businesses it has clearly established itself as a serious player in the interactive TV marketplace.”