The growing popularity of casino and roulette gaming - through television, but increasingly through mobile and tablet devices - is proving good news for interactive gaming company, NetPlay TV (NPT). Indeed, full-year net revenue jumped 27.5 per cent to £21.8m and cash profit soared 30.5 per cent to £4.3m.
That strong growth was helped by marketing spend, which grew 57.5 per cent in 2012 to £9.2m. This included revenue share agreements in respect of key broadcast relationships with ITV and Channel 5, as well as advertising costs. Yet, despite this, the cash profit margin still rose 40 basis points to 19.8 per cent. Management has also signed a new contract with ITV, increasing broadcasts from four night a week to six nights. What's more, NetPlay TV's progress has continued into the new financial year. In the first quarter, for instance, the group experienced a 42 per cent year-on-year increase in new depositing casino players, with a 39 per cent year-on-year increase in active depositing casino players. From those new customers, some 34 per cent use mobile and tablet devices - up from 9 per cent in 2012's first quarter.
Broker Daniel Stewart expects pre-tax profit of £4.2m, giving EPS of 1.4p (from 1.2p in 2012).
NETPLAY TV (NPT) | ||||
|---|---|---|---|---|
| ORD PRICE: | 17.8p | MARKET VALUE: | £51m | |
| TOUCH: | 17.5-18p | 12-MONTH HIGH: | 19.8p | LOW: 9.1p |
| DIVIDEND YIELD: | 2.1% | PE RATIO: | 15 | |
| NET ASSET VALUE: | 5p* | NET CASH: | £12.3m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 19.8 | -0.99 | -1.13 | nil |
| 2009 | 18.5 | -8.40 | -5.54 | nil |
| 2010 | 19.8 | -14.2 | -6.73 | nil |
| 2011** | 20.7 | 0.55 | 0.20 | nil |
| 2012 | 27.3 | 3.14 | 1.20 | 0.38 |
| % change | +32 | +471 | +500 | - |
Ex-div: 22 May Payment: 13 Jun *Includes intangible assets of £5.3m, or 2p a share **Restated | ||||
