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NetPlay TV completes Abstract Games and Info-Download acquisitions, says mobile casino revenue growth ‘exceptional’

NetPlay TV completes Abstract Games and Info-Download acquisitions, says mobile casino revenue growth ‘exceptional’

NetPlay TV (AIM: NPT) has completed the acquisitions of Abstract Games, which will be sold back to the original owners with the company retaining subscription services revenues, and of the mobile casino services operations of Info-Download, a subsidiary of entertainment products developer Zed Worldwide.

Abstract Games was purchased in February 2007 for £0.5 million upfront, with the deal allowing for deferred payments capped at £3.5 million. In addition to the first tranche of deferred consideration of £1.01 million paid last year, the board has agreed a final payment with the vendors of £1.1 which will be paid immediately in full as final settlement of the purchase agreement, bringing the total consideration to £2.61 million.

The business will now be sold back to the vendors for £1 following NetPlay's decision to divest itself of its premium rate telephony business, while retaining the recurring revenues from the subscription services operated by Abstract Games since they joined the group.

The acquisition of quiz and mobile casino services from Info-Download Ltd was announced in January this year. The company was purchased for £0.75 million paid in the company’s shares, £0.5 million of which was paid upfront and the remaining deferred payment of £0.25 million will be issued in shares later this month.

As part of the settlement, Netplay TV will cease paying Zed Worldwide £10,000 per month for global distribution of its products after deciding to focus its expansion in regulated markets. Also, as a consequence of entering into the five year strategic deal with Playtech recently, NetPlay TV no longer has a requirement for Zed worldwide to develop mobile side games.Through its agreement with Playtech the company is now able to offer in excess of 10 mobile side games with jackpots exceeding £0.2 million.

The company said that the mobile quiz revenues have remained constant since acquisition, while the mobile casino revenues have shown “exceptional growth” with the bets placed through the mobile casino platform amounting to £0.9 million in November, while showing continued growth on a month to month basis.

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Netplay TV Plc Timeline

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

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