NetPlay TV remains upbeat despite 31% profit slide
Operator says strong balance sheet leaves it well positioned to make strategic acquisitions to help turn around declining revenues
NetPlay TV this morning insisted it remained on-track despite posting a 31% fall in full-year EBITDA and a 4% drop in revenues, with the firm focused boosting growth through “opportunistic M&A” in the UK market.
EBITDA for the 12 months ended 31 January 2014 totalled £3.6m and revenues dipped to £27.4m during a year which saw the company streamline its operational cost base and overhaul its marketing strategy in anticipation of the UK Point of Consumption tax.
NetPlay TV, which operates a number brands including SuperCasino.com, Jackpot247.com and Vernons.com, said new depositing players had gone up 19% across the year to 76,000 while active depositing players were up 20% to 102,000.
And according to NetPlay TV non-executive chairman Charles Butler, the firm’s cash balance of £14.2m, an increase on last year’s £13.9m, has left the firm well positioned to assess acquisition opportunities.
“Thanks to a particularly strong balance sheet and cash generating position, the group has the financial capacity to look at both bolt-on acquisitions and larger strategic acquisitions,” Butler said.
“The group will assess all M&A opportunities, with a focus on those that enable the group to re-enforce its position in the current UK interactive gaming market,” he added.
Earlier this week Net Play TV CEO Bjarke Larsen announced the company had managed to secure a three-year extension to its agreement with Channel 5, which screens its late night SuperCasino live interactive show.
“The recently announced Channel 5 deal clearly illustrates our strong focus on TV as a marketing strategy and the fact it remains our key USP,” Larsen said.
“Whilst the full environmental impact of the Point of Consumption duty on the industry is yet to be seen, we are confident with our post-PoC operational strategy and believe the group is in a strong position for opportunistic M&A,” he added.
In January Larsen told eGaming Review the operator was hopeful of making a “transformational” acquisition during the second half of the year.
NetPlay TV’s share price was down by 50p to £9.13p after early morning trading.