Interactive gaming company NetPlay TV (NPT) reported a 17 per cent increase in adjusted cash profit to £2.7m as a big push to attract more players paid off. The company airs its SuperCasino and Jackpot 247 games on ITV, Channel 5 and its own Sky channel. NetPlay began its first major TV sponsorship deal in June with Channel 5's Big Brother show, which has proved to be a shrewd way to pull in new players.
Alongside its core TV marketing, NetPlay has ramped up online marketing spend in an attempt to broaden its reach and has also been investing heavily in the mobile and tablet segment. The company grew its new depositing casino players by 31 per cent during the first half, with around a third of new players coming from mobile and tablet.
But NetPlay is not resting on its laurels. "The strategy is to push marketing hard to continue to take market share," says chief executive Charles Butler. He notes that the company's burgeoning cash pile gives it the flexibility to engage in corporate activity if the right deal comes along, or to enter new markets; the Netherlands is a key area of interest as that market heads towards deregulation in 2015.
Broker N+1 Singer expects full-year adjusted EPS of 1.5p (from 1.2p in 2012), rising to 1.9p in 2014.
NETPLAY TV (NPT) | ||||
|---|---|---|---|---|
| ORD PRICE: | 19p | MARKET VALUE: | £55.6m | |
| TOUCH: | 19-19.25p | 12-MONTH HIGH: | 20p | LOW: 10p |
| DIVIDEND YIELD: | 2.1% | PE RATIO: | 13 | |
| NET ASSET VALUE: | 5.5p* | NET CASH: | £14.9m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 10.4 | 1.61 | 0.57 | 0.15 |
| 2013 | 14.2 | 2.34 | 0.82 | 0.18 |
| % change | +36 | +46 | +44 | +20 |
Ex-div: 25 Sep Payment: 17 Oct *Includes intangible assets of £5.3m, or 2p a share | ||||
