4 Sep 2008 07:00
NetPlay TV plc
Update
Current trading in line with market expectations
Strategic review identified potential group savings
Celebrity TV Bingo to launch in UK in October
TV Bingo to launch throughout Europe in Q4
NetPlay TV plc (AIM: NPT), the interactive gaming company, today announces that the Board has completed a comprehensive review of the Group's activities and current operational structure in order to identify achievable strategic synergies following the acquisition of Bingos.com announced in March 2008.
The Company is pleased to announce that it expects to achieve significant monthly savings by relocating the operational business of Bingos.com from Majorca, Spain, to the Group's existing TV and operations office in the UK. Bingos.com currently operates as an Internet only site in the UK, Spain, Italy and Poland. As a result of the move TV Bingo will be added to all sites by the last quarter of 2008.
In addition, Celebrity TV Bingo will launch in the UK in October. Stars including, Jim Bowen, Linda Lusardi, Sherrie Hewson, Cheryl Baker, Mark Durden Smith and Greg Scott will host the show to be televised daily on Sky Channel 867.
The key management of the Bingos.com business including the CEO, Dominic Mansour, will also relocate to the UK over the coming month. As expected, in addition the Board has identified a number of areas where there is duplication between NetPlay TV and Bingos.com; as a result, some redundancies will be implemented in Spain and the Group has commenced the necessary consultation process.
The anticipated cost of redundancies and the restructuring is expected to be equivalent to the €625,000 payment that the Company had already negotiated from the vendors of Bingos.com, resulting in a cash flow neutral effect for the Company. The revised total consideration paid for Bingos.com will therefore now be €7.375m instead of the previously stated €8.0m.
The Company is pleased to confirm that current trading in all areas of the Group is in line with market expectations. The Board expects the anticipated savings arising from this strategic review to improve profitability with effect from the last quarter of 2008.
Martin Higginson, Chairman and Chief Executive of NetPlay TV plc, said:
"NetPlay has delivered significant growth over the last 12 months including a number of key acquisitions, and now moving all of NetPlay TV's operations to the UK makes obvious sense. Many of the functions within the Bingos.com business were duplicated by our current team and therefore it is right that we have been able to make a number of significant savings. In addition, we have used this opportunity to strengthen other areas of our business in particular the technical team. With the key members of the bingo team relocated in the UK, we will be able to work much more closely together as a team allowing us to continue growing the business with the speed and dexterity we demand."
Enquiries:
NetPlay TV plc
Martin Higginson, Executive Chairman www.netplaytv.plc.uk
Via Redleaf
Redleaf Communications Tel: 020 7822 0200
Emma Kane / Sanna Sumner / Mike Ward netplay@redleafpr.com
Landsbanki Securities (UK) Limited
Emma Flin / Ellie Taylor Tel: 020 7426 9000
Notes to Editors:
Publication photographs are available from Redleaf Communications or www.redleafpr.com
About NetPlay TV plc
NetPlay TV plc is listed on the AIM market of the London Stock Exchange (NPT). NetPlay TV operates a number of interactive gaming services under a UK gaming license, including "Live Roulette" ™, Live BlackJack and Big Box Bingo. www.liveroulette.com, www.bingos.com. These services can also be viewed live on television on Sky Channel 866, and 867, as well as selected channels on Freeview, and Virgin channels.
The Company is focused on the delivery of a converged interactive gaming experience allowing its customers to interact with its games on a variety of platforms, TV, Internet and mobile from a common integrated wallet.