NETPLAY TV PLC Date: | 21 March 2016 |
On behalf of: | NetPlay TV plc ("the Company") along with its subsidiaries (the "Group" or "NetPlay" or "NetPlay TV") |
Embargoed until: | 0700hrs |
Not for release, publication or distribution, in whole or in part, in, into or from any jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdiction
Final Results for year ended 31 December 2015
NetPlay TV plc (AIM: NPT), the interactive gaming company, is pleased to announce its final results for the year ended 31 December 2015. The full annual report and financial statements are available on the website www.netplaytv.com
17% increase in new depositing players to 88,551 (2014: 75,687)
14% increase in active depositing players to 115,874 (2014: 101,532)
Net revenue of £26.3m (2014: £27.4m)
Financial highlightsAdjusted EBITDA* of £2.7m (2014: £3.6m) which is at the top end of market expectation after incurring betting and gaming duties of £3.8m (2014: £0.5m)
Like-for-like ("LFL") adjusted EBITDA† increased by £1.8m to £2.5m (2014: £0.7m)
Reported profit and total comprehensive income of £0.6m (2014: Loss of £0.1m)
Adjusted profit before tax‡ of £2.2m (2014: 3.2m) resulting in an adjusted earnings per share of 0.76 pence per share (2014: 1.09 pence per share)
Cash and cash equivalents at 31 December 2015 of £13.0m (2014: £14.2m) after paying £2.6m in respect of the digital marketing business acquired in the year and £1.6m dividend paid
Operational highlightsKey broadcast relationships with Channel 5 / Viacom§ and ITV (post period) extended for a further three years
Effective and efficient marketing strategy delivering increased returns
Increased average revenue per active depositing player (casino-only brands) of £328 (2014: £316)
Acquisition contributing £1.1m net revenue and £0.2m towards adjusted EBITDA since the date of acquisition (11 August 2015)
Current trading18% increase in total net revenue over the same period in 2015**
DividendIncrease in proposed final dividend to 0.34 pence per share (2014: 0.33 pence per share)
Additional distribution of £2.0m to shareholders via a proposed special dividend of 0.68 pence per share
These proposals together with the interim dividend (paid in October 2015) brings the total dividend for 2015 to 1.24 pence per share
"We have delivered significant strategic and operational progress in the year, resulting in adjusted EBITDA at the top end of market expectations. We successfully navigated the impact of the UK Point of Consumption duty ("POC") as a result of the initiatives implemented at the end of 2014 and positioned the company for
* Adjusted EBITDA is reconciled on the Consolidated Statement of Comprehensive Income. Adjusted EBITDA is non-GAAP, company specific measure, and excludes acquisition related and other expenses, impairment of intangible assets and share based payment charges.
†LFL adjusted EBITDA is a non-GAAP, company specific measure, and is reconciled in the financial review.
‡ Adjusted profit before tax excludes amortisation of intangibles arising on business combination, share based payment charges, impairment of intangible assets and acquisition related and other expenses. Adjusted earnings per share is calculated based on adjusted profit before tax. A full reconciliation is provided in note 5.
§ Viacom International Media Networks, a division of Viacom Inc, announced on 10 September 2014 the completion of its £450m acquisition of Channel 5 Broadcasting Limited from Northern & Shell Media Group.
** The period for the comparison is 1 January to 15 March, being the last practicable date before the publication of this report.
future growth. Our synergistic acquisition of Otherside in August 2015 helped us to strengthen our capabilities and diversify the Group's revenues.
"The measures we took at the end of the 2014 have borne-fruit as is evident with our core KPIs remaining strong and with adjusted EBITDA increasing by £1.8m on a like-for-like basis.
"NetPlay TV continues to have a very strong balance sheet and remains highly cash generative, giving the Board continued confidence that the Group is well positioned to pursue not just bolt on opportunities but also more transformational deals, taking advantage of the organic growth and M&A opportunities that lie ahead.
"NetPlay TV has successfully delivered against its strategy by reinforcing its USP. The business is in a strong position and well equipped to build on its past success to drive growth and deliver shareholder value. As a result I am pleased to announce that today we are proposing a special dividend alongside an increase in our final dividend"
NetPlay TV plc | www.netplaytv.com |
Bjarke Larsen, Chief Executive Officer Akshay Kumar, Group Finance Director | Via Redleaf |
Redleaf Communications | |
Rebecca Sanders-Hewett Sarah Fabietti Susie Hudson | Tel: 020 7382 4730 netplay@redleafpr.com |
Shore Capital (Nominated Adviser and Broker) | Tel: 020 7408 4090 |
Stephane Auton | |
Edward Mansfield Notes to Editors: About NetPlay TV plc
NetPlay TV plc operates a number of online interactive gaming services under a UK remote operating license and Alderney gaming licence, these include SuperCasino.com, Jackpot247.com and Vernons.com. The Group is focused on the delivery of a converged interactive gaming experience allowing its players to interact with its games on a variety of platforms, TV, internet, mobile and tablet. Its TV services can be viewed every evening on ITV and Channel 5.
The Group also operates a specialist online digital marketing, product development and technology business. This provides a complementary and profitable revenue stream whilst adding to the Group's capability in driving traffic to NetPlay TV's brands.
The Company is admitted to trading on the AIM market of the London Stock Exchange (NPT).
CHAIRMAN'S STATMEMENTDear Shareholder,
This is the first full year of trading since Bjarke Larsen became Chief Executive Officer and I want to congratulate Bjarke on leading a highly experienced and capable management team through a rapidly changing market place. The initiatives implemented at the end of 2014 to navigate the UK Point of Consumption duty ("POC") have been effective; strategic TV broadcasting relationships have been renegotiated and digital marketing capabilities and revenue diversification have been successfully strengthened with the acquisition of the trade and assets from Otherside Inc.
The management team has delivered against our stated strategy by reinforcing our USP through the contract extensions with ITV* and Channel 5 / Viacom† , focusing on operational efficiencies and completing synergistic acquisitions to both strengthen capabilities and diversify the Group's revenues. We are confident that the actions taken have created a solid foundation from which the core business can continue to operate successfully and drive further growth.
The UK gambling market has undergone significant regulatory change over the last 18 months. These changes have had a widespread impact on the industry that is evident from the recent mergers of some the UK's largest gaming and gambling operators. These results demonstrate how versatile and adaptive our business has been with like-for-like ("LFL") adjusted EBITDA‡ growing by £1.8m, which shows how successful the strategy has been to improve operational and marketing efficiencies.
In line with the trading update issued in January 2016, I am pleased to report that the Group delivered net revenue of £26.3m and adjusted EBITDA of £2.7m, which is at the top-end of market expectations. The Group has no debt, is cash generative and holds a strong balance sheet with cash of £13.0m at year end, following the £2.6m cash paid in respect of the acquisition of the assets from Otherside Inc.
The business has remained highly cash generative and maintains a robust balance sheet to support the future organic growth of the Group and any suitable M&A opportunities that arise.
Considering the strength of the Group's cash position, robust trading performance and positive outlook, the Board is proposing both an increase in the final dividend to 0.34 pence per share (2014: 0.33 pence per share) and also an additional distribution of £2.0m via a special dividend equivalent to 0.68 pence per share.
This proposed special dividend together with the final dividend and the interim dividend (paid in October 2015) brings the total dividend to 1.24 pence per share.
With their continued commitment and talent, our employees around the world remain pivotal to NetPlay TV's success. On behalf of the Board, I would like to thank every one of them for their hard work and dedication during this challenging year.
The Group announced on the 14 January 2016, via the Regulatory News Service (RNS), that it had renewed its commercial airtime agreement with ITV until 2019.
† Viacom International Media Networks, a division of Viacom Inc, announced on 10 September 2014 the completion of its £450m acquisition of Channel 5 Broadcasting Limited from Northern & Shell Media Group.
‡ LFL adjusted EBITDA is a non-GAAP, company specific measure, and is reconciled in the financial review.
Outlook for 2016Trading in the first part of 2016 has been strong across both our B2C (core online gaming operations) and B2B (digital marketing operations) businesses. The Board remains confident that NetPlay TV is well positioned, with continued cash generation and a strong balance sheet, to take advantage of the organic growth and M&A opportunities which lie ahead. This should be particularly evident by the fact that the Group is pursuing not just bolt-on opportunities but also considering more transformational deals, such as the potential acquisition of The Football Pools, which it considered in December 2015* although ultimately chose not to pursue.
I am confident that our business is well equipped for the year ahead, allowing us to capitalise on the opportunities available and continuing to build on the success of the past year.
Charles Butler ChairmanThe Company announced on 11 January 2016, via the Regulatory News Service (RNS), that it had held preliminary discussions in relation to the potential purchase of the Football Pools business but after consideration chose not to enter into a competitive bid process and therefore terminated discussions.
Netplay Tv plc issued this content on 21 March 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 21 March 2016 07:03:30 UTC
Original Document: http://www.netplaytv.com/system/storage/serve/6/NPTV 2015 RESULTS FINAL.pdf
