SBC News Voice of the Sports Betting Industry
Interactive gambling operator, NetPlay TV Plc, recorded a decline in H1 2014 profits of 50%, reporting corporate profits of £1.2 million (H1 2013: £2.4 million)
Reporting on the opening six months of 2014, the operator recorded improved performance indicators, which an 24% increase in new player acquisition (H1 2014 – 40,500) and a further 29% increase in active players (H1 2014 – 62,000)
The positive increase witnessed in player acquisition and retention, were not supported by NetPlay TV’s financial performance during the period. Hit by higher operating and marketing costs reported during the period, NetPlay saw a decline in EBITDA earnings of 18.5% of £2.2 million (2013 H1 2.7 million).
The operators increased spending and low EBITDA, was supported by only a slight increase in net revenues of £14.5 million (H1 2013: £14.2 million).
NetPlay TV stated that the increased operational expenditure during the period, would benefit the company long term, as the operator looks to bring improvements and refinement to its live, mobile and digital products.
The operator continued its lead sponsorship of Channel Five’s Big Brother Show, which aided the operator’s positive results with regards to player acquisition and retention. However NetPlay stated that other marketing verticals had increased in pricing, due to high levels of igaming competition and sector advertising saturation.
Commenting on the results and the trading update, Charles Butler, NetPlay TV CEO Commented:
“The period has been one of adjustment for the sector as a whole and not withstanding this, we are pleased to be reporting increased levels of both new depositing players and active depositing players, an illustration of the success of our marketing strategy”.
“In addition, we are pleased to announce that due to the continued strong cash position of the Group, the Board is increasing the interim dividend payable to 0.22 pence per share. We have worked hard during the period in preparing the business for the six months ahead, ensuring it is well positioned post the impending legislative changes”.
Due to the operators strong cash position and the earnings cover of the Group, the company said that its board increased the interim dividend payable to 0.22 pence per share. The interim dividend will be paid on 23 October 2014 to shareholders on the register on 26 September 2014.
