LONDON (Alliance News) - NetPlay TV PLC on Tuesday expressed confidence for 2015 and beyond, even as it reported a sharp fall in pretax profit for the first half of the year.
For the half year to end-June, the online gaming company reported a pretax profit of GBP239,000, up from an adjusted GBP1.2 million a year before, as revenue shrunk to GBP12.7 million from GBP14.5 million and lower marketing expenses were partly offset by an increase in betting and gaming duties in relation to the new Point of Consumption duty in the UK.
Total active depositing players increased to 63,411 from 62,356 a year before, and average revenue per active depositing player increased to GBP273 in the half year from GBP265 in the year-earlier half. The company said it is focusing its marketing efforts on servicing existing players in an effort to retain customers, leading to around 62% of all of its revenue coming from players who have held an account for over a year.
During the period the company signed a new three-year partnership deal with Channel 5 and Viacom, which it said ensures that its SuperCasino business will remain on UK terrestrial TV until December 2018.
Netplay is maintaining its interim dividend at 0.22 pence per share.
Following the half year-end the company acquired marketing, product development and technology company Otherside Inc in a GBP3.2 million deal.
"We're excited about the opportunities that the acquisition of Otherside Inc brings to the group initially providing a profitable revenue stream whilst adding to our capability in driving traffic to NetPlay's brands once the integration is complete. This alongside the group's solid marketing performance and opportunistic acquisition strategy supported by a robust cash position gives us confidence for the year ahead and beyond," said Chief Executive Officer Bjarke Larsen in a statement.
Shares in Netplay were down 1.0% at 9.65 pence Tuesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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