Netplay TV posts loss after landmark year
NORTH West interactive gaming company Netplay TV said this year was proving to be a “landmark” year as it reported a half year loss of £3.2m.
The AIM-listed Lancashire and London-based firm, said it had changed its status from a “small opportunistic gaming company” to being a dominant player in the terrestrial TV market.
Netplay TV operates brands such as Supercasino.com, ChallengeJackpot.com and Bingos.com. It has recently won contracts with Channel 5 and STV to operate late-night interactive gaming services.
In the six months to June 30, after heavy investment in new systems and people the company made a £3.2m lass against a profit of £35,000 last year.
Turnover was down too, from £10.1m to £9.3m, as a result of the strategic exit of premium rate telephony business Abstract Games.
Revenues from interactive gaming rose from £5.7m to £8.5m.
Chief executive Martin Higginson said: “This year has been one of great opportunities for the company. The changes in the Ofcom rules have allowed us to capitalise on our area of expertise.
“The directors believe that we now dominate the UK terrestrial interactive TV market and whilst this has come at a cost in terms of funding the early stages we are now uniquely positioned to take advantage of these opportunities and leverage the investment we have made.”
Netplay boosted its balance sheet in July with a £12.8m placing to fund future growth.
Lancaster based Mr Higginson added: “2009 has so far been a landmark year for the business; NetplayTV has been transformed from a small opportunistic gaming company into what is quickly becoming a fully fledged media business.
“Turnover from our core products continues to grow, and in many cases is ahead of expectations.
“In May 2009 Ofcom changed the teleshopping rules allowing UK terrestrial TV channels to broadcast between midnight and 6am. It also reclassified all transactional gaming as teleshopping.
“As a result of this opportunity we have invested heavily in staff and technology allowing us to partner with high end Tier 1 media channels.
“In early 2009 we took the decision to divest our premium rate telephony business, Abstract Games. The closure of this business was in the view of the board a necessity if we were to seriously partner with major broadcasters.
“With these major changes our EBITDA is lower than expected, with the group showing a small loss for the first six months of 2009.
“The directors believe these short term costs are an essential investment in the future that will pay significant dividends in the coming years.”
