Investors Chronicle10 Apr 2014 10:22
here is the BUY rating and full article from IC, should be in print edition which is on sale tomorrow (I believe):
Investors Chronicle favourite NetPlay TV (NPT) has reported another strong set of annual results after continued heavy spending on marketing delivered a 25 per cent increase in new players. The interactive gaming company also witnessed gross bets exceeding the £1bn mark for the first time in 2013.
Consistently cash-generative, the group reported a healthy bank balance at the end of the year - up £1.6m on 2012 even though it funded hefty promotional work, paid out dividends and spent £3m on Sportech's e-gaming division, Vernons.com. The key has been keeping costs low: operational expenses accounted for just 22 per cent of revenues in 2013.
Big TV deals also helped increase the scale of the business, as the group signed a new three-year contract with ITV and agreed to sponsor Big Brother. Chief executive Charles Butler said he hoped such deals would be replicated this year, but admitted that online marketing would be the priority. Player retention rates will remain crucial: 45 per cent of 2013 revenues came from players who had held an account for 12 months or longer.
Broker N+1 Singer expects pre-tax profits of £5.7m for 2014, giving EPS of 1.98p - up from £4.9m and 1.6p, respectively, in 2013.