TIDMNPT
RNS Number : 9138Z
Netplay TV PLC
30 September 2009
?
+----------------+-------------------------------------------------------------+
| Date: | 30 September 2009 |
+----------------+-------------------------------------------------------------+
| On behalf of: | NetPlayTV plc ('NetPlay TV', 'the Company' or 'the Group') |
+----------------+-------------------------------------------------------------+
| Embargoed | 0700hrs |
| until: | |
+----------------+-------------------------------------------------------------+
NetPlay TV plc
Interim results for the six months ended 30 June 2009
NetPlay TV plc (AIM: NPT), the interactive gaming company, is pleased to
announce its interim results for the six months ended 30 June 2009 and provide
its shareholders with a trading update.
Highlights
* Total Gross Bets exceeded GBP204m for the period, an increase of 31% (H1 2008:
GBP154m)
* Total Gross Bets increased by 35% in Q3 2009 to GBP130m compared to Q1 2009:
GBP96m
* Total Bets in August exceeded GBP43m, with SuperCasino.com gaming margin
exceeding GBP0.75m, the highest recorded month to date
* EBITDA^ of GBP0.1m loss due to significant investment in additional staff and
associated costs to implement new media channels and divestment of non-core
assets (H1 2008: GBP1.0m profit)
* Placing in July raised GBP12.8m to fund future growth of business
* Ofcom rule change in May 2009 allows company to exploit dominant position
* Broadcast deals signed with terrestrial TV broadcasters, Channel Five, and STV,
and digital broadcasters, Virgin Media Television, Freeview, Turner Media, and
FreeSat
* Daily depositing players has increased five-fold since launching on terrestrial
TV in mid-September 2009
* Five year software deal with Playtech plc
* Launched first "live" Fixed Odds Betting Terminal through Stanleybet
International. Roll out to commence later this year
* Launched interactive Mobile to TV product, a world first for an interactive
gaming company
* Mobile gaming margin revenues have increased 450% compared to the same period
last year (H1 2008: GBP0.208m / H1 2009: GBP0.926m)
^ EBITDA is stated pre-exceptionals and Share based payments
Commenting on the results, Clive Jones, Non executive Chairman of NetPlayTV
said:
"In 2009 NetPlayTV has successfully managed to transform itself from a small
gaming business into a respected Interactive Media business. By signing new
deals with some of the World's largest media businesses it has clearly
established itself as a serious player in the interactive TV marketplace. It is
clear to me that the TV market is looking for a sustainable replacement to the
legacy premium rate telephony formats. NetPlayTV is able to deliver such a fully
regulated product that consumers clearly enjoy.
"Over the coming months we will further increase our investment in both new
interactive TV formats and people. It is our intention to recruit the exciting
new talent to allow us to develop and deliver the very best revenue generating
interactive gaming formats.
"As new territories become regulated we want to ensure we have proven formats we
can roll out on a global basis. We have created a unique business and now intend
need to build on the significant investment we have made to accelerate the
growth of the business. We will continue to work with both UK and global
broadcasters to deliver a solid and profitable business in the coming years."
Martin Higginson, Group CEO, said:
"We have proved to both ourselves and major broadcasters we have a profitable
business model and now need to build on these foundations to further grow the
business. In the first part of 2009 the Ofcom rule changes allowed us to expand
our dominant position in the interactive gaming market into the UK terrestrial
TV market. By raising GBP13m of new funds we have been able to not only sign
long term contracts with major broadcasters but also enter into a period of
significant investment allowing us to transform the business into a global media
player of scale and create additional shareholder value.
"We have successfully delivered a truly converged interactive gaming solution
and we are uniquely positioned in terms of TV distribution. This will allow us
to build a solid and sustainable media business as we move forward. I am
extremely pleased with the progress the business has made so far and I look
forward to the coming years with great confidence."
Enquiries:
+-------------------------------------------------+-----------------------+
| NetPlay TV plc | www.NetPlaytv.plc.uk |
+-------------------------------------------------+-----------------------+
| Martin Higginson, Chief Executive Officer | Via Redleaf |
+-------------------------------------------------+-----------------------+
| | |
+-------------------------------------------------+-----------------------+
| Redleaf Communications | Tel: 020 7566 6700 |
+-------------------------------------------------+-----------------------+
| Emma Kane / Mike Ward / Samantha Robbins | NetPlay@redleafpr.com |
+-------------------------------------------------+-----------------------+
| | |
+-------------------------------------------------+-----------------------+
| Panmure Gordon | |
+-------------------------------------------------+-----------------------+
| Adam Pollock | Tel: 020 7459 3600 |
+-------------------------------------------------+-----------------------+
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 from the UK, Malta
and Alderney, including 'SuperCasino.com', 'ChallengeJackpot.com', and
'Bingos.com'.
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.
CEO's Statement
This year has been one of great opportunities for the Company. The changes in
the Ofcom rules have allowed us to capitalise on our area of expertise. The
Directors believe that we now dominate the UK terrestrial interactive TV market
and whilst this has come at a cost in terms of funding the early stages we are
now uniquely positioned to take advantage of these opportunities and leverage
the investment we have made. Furthermore as we prove our business model we will
be able to roll out our product formats to other broadcasters.
2009 has so far been a "landmark" year for the business; NetplayTV has been
transformed from a small opportunistic gaming company into what is quickly
becoming a fully fledged media business. Turnover from our core products
continues to grow, and in many cases is ahead of expectations. In May 2009 Ofcom
changed the teleshopping rules allowing UK terrestrial TV channels to broadcast
between midnight and 6am. It also reclassified all transactional gaming as
teleshoping. As a result of this opportunity we have invested heavily in staff
and technology allowing us to partner with "high end" Tier 1 media channels. In
early 2009 we took the decision to divest our premium rate telephony business,
Abstract Games. The closure of this business was in the view of the board a
necessity if we were to seriously partner with major broadcasters. With these
major changes our EBITDA is lower than expected, with the Group showing a small
loss for the first six months of 2009. The Directors believe these short term
costs are an essential investment in the future that will pay significant
dividends in the coming years.
Financial Overview
Our core gaming business continues to grow with gross bets hitting GBP130m in
the third quarter of 2009. We anticipate this to grow further with the addition
of two terrestrial TV channels, STV and Channel Five in late September 2009.
Our SuperCasino.com business delivered a Net Gaming Margin for August in excess
of GBP0.75m, the highest recorded margin to date. Our mobile business (excluding
the divested Abstract Games and chat) also continues to grow. Revenue from this
division in the first half of 2009 stood at GBP0.926m compared with GBP0.205m in
the first half of 2008, a 4.5-fold increase. Challenge Jackpot, the gaming brand
we produce on behalf of Virgin Media Television, has shown positive signs of
growth; although integration costs have been slightly higher than initially
anticipated. The Bingos.com brand has seen a decline in Net Gaming Margin, this
is in line with our expectations pending the integration and launch of new TV
bingo game formats.
Administration expenses were significantly higher in the period due to increased
staff costs, and the amortisation of databases acquired in relation to
Bingos.com, Infodownload and Challenge Jackpot, unrealised foreign exchange
losses for the period of GBP0.147m and share based charge under IFRS 2 for the
period was GBP0.617m, the increase mainly being attributable due to the Virgin
warrant options issued in May. The company policy being adopted is to amortise
the databases over two years.
Furthermore we have reduced the provision for the deferred consideration payable
to the vendors of Abstract Games by GBP0.5m, thus reducing goodwill and
liabilities. Given the divestment in the premium rate telephony business, we
have decided to write off GBP0.9m, leaving GBP0.2m in the balance sheet.
Operating Overview
During the period we have made a number of significant strategic decisions, all
of which are as a result of the terrestrial TV market opening up. In early 2009
Ofcom ruled that terrestrial broadcasters could accept commercial programme
airtime. Thus allowing gaming companies the ability to broadcast blocks of
gaming content post midnight on terrestrial TV stations. These decisions, whilst
adding to the cost base, mean the Company is uniquely positioned to seize the
major global TV opportunities available today and grow the business in a
sustainable manner over time.
The investment in a new "backend" software deal with Playtech, the World's
largest gaming software provider, has resulted in a delay to moving
SuperCasino.com offshore from 1 April to Q4 2009. This decision is necessary in
order to work with Tier 1 broadcasters allowing us to scale our business
infrastructure with confidence. The EBITDA impact of this is estimated at circa
GBP1.2m for the full year. Tests with terrestrial broadcasters undertaken during
the year proved that with terrestrial channels broadcasting our interactive
shows the number of depositing sign-ups could potentially increase
significantly. The five year agreement with Playtech enables the Company to grow
its business with broadcasters both in the UK and internationally with
confidence.
In early 2009 we took the decision to divest of our premium rate telephony
subsidiary. This area of business was coming under increased regulatory pressure
and as such all companies including TV broadcasters have been looking to exit
this form of revenue. In exiting this business we have been able to offer major
media partners a profitable alternative. Agreement has been reached for this
business to be sold back to the original owners by way of a reduced "earn out"
payment and a nominal transactional sum. The Board believes this business
represented an anticipated GBP0.75m of EBITDA profit for the current financial
year.
Whilst these costs are "one off" they will have a significant impact on the full
year EBITDA number for 2009. These decisions have allowed us to fully exploit
the UK terrestrial TV opportunities and are an important move if we are to enter
into long term deals with major global broadcasters. During the year we have
signed deals with Virgin Media Television, Freeview, Turner Media, STV, FreeSat
and Five. As a result, the Company now dominates the UK terrestrial and digital
TV interactive gaming market, and is able to generate stronger and better
quality revenues.
Supercasino.com, Challenge Jackpot and STVcasino.com
As the Group develops we are moving towards offering customers branded
solutions. We believe investment in recognised and trusted brands builds loyalty
and trust, thus increasing the life time value of a player. Currently we are
focused on two brands, SuperCasino.com, and Challenge Jackpot.
SuperCasino.com is our interactive casino product. This brand is our serious
casino offering. In time we will offer additional casino games including poker
and tournament blackjack. We will also look to take these new products onto TV
with exciting new interactive TV formats.
The SuperCasino.com business has come a long way since we acquired the business.
In 2009 we increased our staff numbers allowing us to focus on the terrestrial
opportunities, and start to transform our business into a fully fledged media
company. The deal with STV, and the five year agreement with Channel Five, an
RTL subsidiary, will allow us to further develop the business in the UK as well
as giving us the opportunity to offer a proven format to other broadcasters in
the RTL family. On 17 September the Company started to broadcast SuperCasino.com
on Channel Five. Early signs are extremely encouraging with new depositing
sign-ups increasing some five-fold over the historic number. Whilst it is early
days the Company is extremely pleased with the development of this business.
Over the coming months we will introduce new formats to this airtime as well as
improving the current show format. In the final quarter of 2009 we will move
elements of its TV production, operations and databases offshore onto the
Playtech software. This will achieve savings on UK betting duty of in excess of
GBP100,000 per month and growing, as well as giving us a variety of new games.
These will include a range of new Internet and mobile games.
ChallengeJackpot.com, is a light hearted, fun product where customers can play
everything from slots to roulette in a relaxed environment. Challenge Jackpot
has progressed well since we took over the business in May this year. We have
changed its computerised roulette wheel to a real wheel as well as implementing
a new studio set and improving the production values. The website now boasts a
range of new arcade games, a number of which offer jackpots in excess of GBP2m.
In the next few weeks we will allow many of the games to be played on the mobile
phone, an area we intend to grow rapidly in the coming months. This will give
mobile players the opportunity to win up to GBP2m directly from their mobile
phone. We will also introduce bingo on the website, plus a new interactive TV
bingo game later this year. This will allow us to introduce our current bingo
players to this brand, providing a wider gaming offering.
As we move forward we are looking to distribute the show to other broadcasters,
enabling us to spread production costs across a number of TV channels thus
improving quality and driving economies even further. Our Bingos.com business is
performing in line with expectations and whilst revenues are down on the
previous year our profit contribution remains healthy. In the coming months we
will explore incorporating the Bingos.com and EuroTeleMillions.com businesses
into the Challenge Jackpot brand, providing these customers with an even wider
offering, with bigger jackpots and a larger player community.
Our STVCasino.com product has started with extremely encouraging sign-ups. As we
move forward our aim is to offer our Scottish viewers other formats, including
formats from Challenge Jackpot. This will allow us to increase production values
whilst sharing the production costs across multiple broadcast partners.
Mobile
The Company has allocated additional investment to the mobile
business as we begin to integrate our mobile offering into both the
SuperCasino.com and ChallengeJackpot.com websites. We recognise that players
want the ability to be able to interact with our services using a variety of
devices. With our fully converged single wallet solution a user only needs to
register with us once to be able to play on any device.
The recent launch of our interactive Mobile to TV device has seen great take up
by our customer base. This new product allows users to place bets against a live
TV show using their mobile, a world first for an interactive gaming company. New
mobile games will include interactive Stud Poker, Blackjack and classic arcade
slots, presenting customers with a truly compelling converged gaming offering.
Players will be able to win up to GBP2m from our mobile games giving us a
significant marketing advantage in this fast growth emerging market.
Fixed Odds Betting Terminals
In September we launched our first "live" Fixed Odds Betting Terminal (FOBT)
through StanleyBet International. We have the opportunity to roll out to a
further 1,400 terminals in StanleyBet International shops. The roll out will
take approximately 12 months starting with 400 shops in Italy over the coming
months. We look forward to updating the market later in the year regarding the
progress of this new revenue stream.
We see great scope for "live" FOBT's as well a "live" pub version. We have
committed resource and development funding into establishing a new team to focus
on this emerging market and to take our brands and incorporate them into gaming
terminals. We will invest in celebrity talent to produce and promote unique
formats.
Outlook
In the coming months the Company will invest significant funds in both new TV
formats and people. We believe there is a major opportunity to deliver regulated
interactive gaming formats to broadcasters in regulated markets. We will deliver
a variety of new formats ranging from "soft" games, such as bingo and fixed odds
draws, to "hard" gaming, including Tourmanent BlackJack, Roulette and Poker. The
current investment in infrastructure and technology combined with the new
investment in additional people and TV formats will enable the Company to offer
its unique revenue generating interactive TV formats to other broadcasters
around the World.
NetPlayTV is transforming into a fully fledged media business delivering revenue
generating interactive TV solutions to broadcasters. The major decisions made in
the first half of 2009 will form the foundations for the business as we move
forward. Over the coming months we will establish a new Business Development
team, an ideas "hothouse" focused on delivering new converged interactive TV
formats, including TV Bingo and Tournament Poker and BlackJack. Furthermore, we
are intending to recruit some of the brightest TV and gaming talent in the
industry allowing us to supply a variety of new TV formats to our current
broadcast partners.
The recent deals with STV, and the long term partnership deal with Channel Five
will, we believe, allow us to grow our top line revenues substantially. This
combined with streamlining our cost centres and the strength of our brands will
ensure we maximise the potential profits going forward.
The Directors believe the business is now extremely well positioned to build on
it current assets and relationships and are extremely positive about the year
ahead.
Martin Higginson, Chief Executive Officer
NETPLAY TV PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 30 June 2009
+----------------------------------+------+-------------+-------------+------------+
| | | Six months | Six months | Year |
+----------------------------------+------+-------------+-------------+------------+
| | | ended | Ended | Ended |
| | | 30 June | 30 June | 31 |
| | | 2009 | 2008 | December |
| | | | | 2008 |
+----------------------------------+------+-------------+-------------+------------+
| | Note | (unaudited) | (unaudited) | (audited) |
+----------------------------------+------+-------------+-------------+------------+
| | | GBP000's | GBP000's | GBP 000's |
+----------------------------------+------+-------------+-------------+------------+
| | | | | |
+----------------------------------+------+-------------+-------------+------------+
| Revenue | | | | |
+----------------------------------+------+-------------+-------------+------------+
| Interactive gaming | | 8,514 | 5,724 | 12,422 |
+----------------------------------+------+-------------+-------------+------------+
| Abstract Games | | 827 | 4,405 | 7,337 |
+----------------------------------+------+-------------+-------------+------------+
| | | | | |
+----------------------------------+------+-------------+-------------+------------+
| Total revenue | | 9,341 | 10,129 | 19,759 |
+----------------------------------+------+-------------+-------------+------------+
| | | | | |
+----------------------------------+------+-------------+-------------+------------+
| Cost of sales | | (7,119) | (7,051) | (12,924) |
+----------------------------------+------+-------------+-------------+------------+
| | | | | |
+----------------------------------+------+-------------+-------------+------------+
| Gross profit | | 2,222 | 3,078 | 6,835 |
+----------------------------------+------+-------------+-------------+------------+
| | | | | |
+----------------------------------+------+-------------+-------------+------------+
| Administrative expenses | | | | |
+----------------------------------+------+-------------+-------------+------------+
| Trading related administrative | | (2,198) | (2,077) | (4,191) |
| expenses | | | | |
+----------------------------------+------+-------------+-------------+------------+
| Foreign exchange (loss)/gain | | (147) | 3 | (210) |
+----------------------------------+------+-------------+-------------+------------+
| Aborted capital projects | | (36) | - | - |
+----------------------------------+------+-------------+-------------+------------+
| Depreciation and amortisation | | (1,082) | (219) | (1,279) |
+----------------------------------+------+-------------+-------------+------------+
| Share based payments | | (617) | (92) | (229) |
+----------------------------------+------+-------------+-------------+------------+
| | | | | |
+----------------------------------+------+-------------+-------------+------------+
| Group operating (loss)/profit | | (1,858) | 693 | 926 |
+----------------------------------+------+-------------+-------------+------------+
| | | | | |
+----------------------------------+------+-------------+-------------+------------+
| Impairment of goodwill | | (895) | - | (1,366) |
+----------------------------------+------+-------------+-------------+------------+
| Exceptional items - | | (437) | (671) | (563) |
| restructuring costs | | | | |
+----------------------------------+------+-------------+-------------+------------+
| Finance income | | 1 | 25 | 34 |
+----------------------------------+------+-------------+-------------+------------+
| Finance costs | | (12) | (12) | (24) |
+----------------------------------+------+-------------+-------------+------------+
| | | | | |
+----------------------------------+------+-------------+-------------+------------+
| (Loss)/profit before taxation | | (3,201) | 35 | (993) |
+----------------------------------+------+-------------+-------------+------------+
| | | | | |
+----------------------------------+------+-------------+-------------+------------+
| Income tax expense | | (82) | (169) | (217) |
+----------------------------------+------+-------------+-------------+------------+
| | | | | |
+----------------------------------+------+-------------+-------------+------------+
| Loss for the period | 4 | (3,283) | (134) | (1,210) |
+----------------------------------+------+-------------+-------------+------------+
| | | | | |
+----------------------------------+------+-------------+-------------+------------+
| Other comprehensive income for | | | | |
| the period, after tax: | | | | |
+----------------------------------+------+-------------+-------------+------------+
| Exchange differences on | | 35 | - | - |
| translating foreign operations | | | | |
+----------------------------------+------+-------------+-------------+------------+
| | | | | |
+----------------------------------+------+-------------+-------------+------------+
| Other comprehensive income for | | 35 | - | - |
| the period, net of tax | | | | |
+----------------------------------+------+-------------+-------------+------------+
| | | | | |
+----------------------------------+------+-------------+-------------+------------+
| TOTAL COMPREHENSIVE INCOME FOR | | (3,248) | (134) | (1,210) |
| THE PERIOD | | | | |
+----------------------------------+------+-------------+-------------+------------+
| | | | | |
+----------------------------------+------+-------------+-------------+------------+
| Loss per share | | | | |
+----------------------------------+------+-------------+-------------+------------+
| Basic (p) | 4 | (2.59) | (0.14) | (1.13) |
+----------------------------------+------+-------------+-------------+------------+
| Diluted (p) | 4 | (2.41) | (0.14) | (1.06) |
+----------------------------------+------+-------------+-------------+------------+
NETPLAY TV PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six months ended 30 June 2009
+-----------------------+----------+----------+----------+----------+----------+----------+
| | Share | Share | Merger | Other | Retained | Total |
| | capital | premium | reserve | reserves | earnings | |
+-----------------------+----------+----------+----------+----------+----------+----------+
| | GBP000's | GBP000's | GBP000's | GBP000's | GBP000's | GBP000's |
+-----------------------+----------+----------+----------+----------+----------+----------+
| | | | | | | |
+-----------------------+----------+----------+----------+----------+----------+----------+
| As at 1 January 2009 | 6,162 | 8,763 | 1,457 | 371 | (4,470) | 12,283 |
+-----------------------+----------+----------+----------+----------+----------+----------+
| | | | | | | |
+-----------------------+----------+----------+----------+----------+----------+----------+
| Shares issued as | 427 | 1,573 | - | - | - | 2,000 |
| purchase | | | | | | |
| consideration | | | | | | |
+-----------------------+----------+----------+----------+----------+----------+----------+
| | | | | | | |
+-----------------------+----------+----------+----------+----------+----------+----------+
| Shares issued for | 248 | 638 | - | - | - | 886 |
| cash | | | | | | |
+-----------------------+----------+----------+----------+----------+----------+----------+
| | | | | | | |
+-----------------------+----------+----------+----------+----------+----------+----------+
| Cost of issuing | - | (6) | - | - | - | (6) |
| shares for cash | | | | | | |
+-----------------------+----------+----------+----------+----------+----------+----------+
| | | | | | | |
+-----------------------+----------+----------+----------+----------+----------+----------+
| Transfer between | - | - | - | (227) | 227 | - |
| reserves* | | | | | | |
+-----------------------+----------+----------+----------+----------+----------+----------+
| | | | | | | |
+-----------------------+----------+----------+----------+----------+----------+----------+
| Share based payment | - | - | - | 617 | - | 617 |
| charge in period | | | | | | |
+-----------------------+----------+----------+----------+----------+----------+----------+
| | | | | | | |
+-----------------------+----------+----------+----------+----------+----------+----------+
| Total comprehensive | - | - | - | - | (3,248) | (3,248) |
| income for the period | | | | | | |
+-----------------------+----------+----------+----------+----------+----------+----------+
| | | | | | | |
+-----------------------+----------+----------+----------+----------+----------+----------+
| As at 30 June 2009 | 6,837 | 10,968 | 1,457 | 761 | (7,491) | 12,532 |
+-----------------------+----------+----------+----------+----------+----------+----------+
Other reserves are comprised of share based payment reserve and investments in
the companies own shares.
*The transfer between reserves relates to share based payment charges for
options lapsed or vested during the period.
NETPLAY TV PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 June 2009
+--------------------------------+------+--------------+--------------+--------------+
| | | As at | As at | As at |
+--------------------------------+------+--------------+--------------+--------------+
| | | 30 June | 30 June | 31 December |
| | | 2009 | 2008 | 2008 |
+--------------------------------+------+--------------+--------------+--------------+
| | Note | (unaudited) | (unaudited) | (audited) |
+--------------------------------+------+--------------+--------------+--------------+
| | | GBP000's | GBP000's | GBP 000's |
+--------------------------------+------+--------------+--------------+--------------+
| ASSETS | | | | |
+--------------------------------+------+--------------+--------------+--------------+
| Non-current assets | | | | |
+--------------------------------+------+--------------+--------------+--------------+
| | | | | |
+--------------------------------+------+--------------+--------------+--------------+
| Goodwill | | 3,608 | 6,655 | 5,084 |
+--------------------------------+------+--------------+--------------+--------------+
| Property, plant and equipment | | 790 | 835 | 809 |
+--------------------------------+------+--------------+--------------+--------------+
| Intangible assets | | 9,576 | 7,271 | 7,528 |
+--------------------------------+------+--------------+--------------+--------------+
| Deferred tax assets | | 1 | 25 | 1 |
+--------------------------------+------+--------------+--------------+--------------+
| | | | | |
+--------------------------------+------+--------------+--------------+--------------+
| Total non-current assets | | 13,975 | 14,786 | 13,422 |
+--------------------------------+------+--------------+--------------+--------------+
| | | | | |
+--------------------------------+------+--------------+--------------+--------------+
| Current assets | | | | |
+--------------------------------+------+--------------+--------------+--------------+
| Inventories | | 17 | 79 | 57 |
+--------------------------------+------+--------------+--------------+--------------+
| Trade and other receivables | | 3,750 | 3,090 | 2,656 |
+--------------------------------+------+--------------+--------------+--------------+
| Cash and cash equivalents | | 1,388 | 3,665 | 2,015 |
+--------------------------------+------+--------------+--------------+--------------+
| | | | | |
+--------------------------------+------+--------------+--------------+--------------+
| Total current assets | | 5,155 | 6,834 | 4,728 |
+--------------------------------+------+--------------+--------------+--------------+
| | | | | |
+--------------------------------+------+--------------+--------------+--------------+
| TOTAL ASSETS | | 19,130 | 21,620 | 18,150 |
+--------------------------------+------+--------------+--------------+--------------+
| | | | | |
+--------------------------------+------+--------------+--------------+--------------+
| EQUITY AND LIABILITIES | | | | |
+--------------------------------+------+--------------+--------------+--------------+
| | | | | |
+--------------------------------+------+--------------+--------------+--------------+
| Share capital | 5 | 6,837 | 6,018 | 6,162 |
+--------------------------------+------+--------------+--------------+--------------+
| Share premium | | 10,968 | 8,157 | 8,763 |
+--------------------------------+------+--------------+--------------+--------------+
| Merger reserve | | 1,457 | 1,457 | 1,457 |
+--------------------------------+------+--------------+--------------+--------------+
| Other reserves | | 761 | 279 | 371 |
+--------------------------------+------+--------------+--------------+--------------+
| Retained earnings | | (7,491) | (3,099) | (4,470) |
+--------------------------------+------+--------------+--------------+--------------+
| | | | | |
+--------------------------------+------+--------------+--------------+--------------+
| Total equity | | 12,532 | 12,812 | 12,283 |
+--------------------------------+------+--------------+--------------+--------------+
| | | | | |
+--------------------------------+------+--------------+--------------+--------------+
| Non-current liabilities | | | | |
+--------------------------------+------+--------------+--------------+--------------+
| Deferred tax liabilities | | - | 165 | - |
+--------------------------------+------+--------------+--------------+--------------+
| Financial liabilities | | - | - | 64 |
+--------------------------------+------+--------------+--------------+--------------+
| | | | | |
+--------------------------------+------+--------------+--------------+--------------+
| Total non-current liabilities | | - | 165 | 64 |
+--------------------------------+------+--------------+--------------+--------------+
| | | | | |
+--------------------------------+------+--------------+--------------+--------------+
| Current liabilities | | | | |
+--------------------------------+------+--------------+--------------+--------------+
| Financial liabilities | | 1,515 | 3,500 | 2,077 |
+--------------------------------+------+--------------+--------------+--------------+
| Trade and other payables | | 4,598 | 4,611 | 3,511 |
+--------------------------------+------+--------------+--------------+--------------+
| Current income tax liabilities | | 251 | - | 176 |
+--------------------------------+------+--------------+--------------+--------------+
| Borrowings | | 234 | 532 | 39 |
+--------------------------------+------+--------------+--------------+--------------+
| | | | | |
+--------------------------------+------+--------------+--------------+--------------+
| Total current liabilities | | 6,598 | 8,643 | 5,803 |
+--------------------------------+------+--------------+--------------+--------------+
| | | | | |
+--------------------------------+------+--------------+--------------+--------------+
| TOTAL EQUITY AND LIABILITIES | | 19,130 | 21,620 | 18,150 |
+--------------------------------+------+--------------+--------------+--------------+
| | | | | |
+--------------------------------+------+--------------+--------------+--------------+
NETPLAY TV PLC
CONSOLIDATED CASH FLOW STATEMENT
for the period ending 30 June 2009
+---------------------------------------+-------------+-------------+-------------+
| | Six months | Six months | Year |
| | | | |
+---------------------------------------+-------------+-------------+-------------+
| | ended | ended | ended |
| | 30 June | 30 June | 31 December |
| | 2009 | 2008 | 2008 |
+---------------------------------------+-------------+-------------+-------------+
| | (unaudited) | (unaudited) | (audited) |
+---------------------------------------+-------------+-------------+-------------+
| | GBP000's | GBP000's | GBP000's |
+---------------------------------------+-------------+-------------+-------------+
| | | | |
+---------------------------------------+-------------+-------------+-------------+
| | | | |
+---------------------------------------+-------------+-------------+-------------+
| Cash flows from operating activities | | | |
+---------------------------------------+-------------+-------------+-------------+
| Total operating (loss)/profit | (1,858) | 693 | 926 |
+---------------------------------------+-------------+-------------+-------------+
| | | | |
+---------------------------------------+-------------+-------------+-------------+
| Adjustments for: | | | |
+---------------------------------------+-------------+-------------+-------------+
| Depreciation and amortisation | 1,082 | 219 | 1,279 |
+---------------------------------------+-------------+-------------+-------------+
| Share based payments and similar | 617 | 91 | 229 |
| charges | | | |
+---------------------------------------+-------------+-------------+-------------+
| Exceptional items | (437) | (671) | (563) |
+---------------------------------------+-------------+-------------+-------------+
| Decrease in inventories | 40 | 79 | 101 |
+---------------------------------------+-------------+-------------+-------------+
| (Increase)/decrease in trade and | (1,008) | 158 | (312) |
| other receivables | | | |
+---------------------------------------+-------------+-------------+-------------+
| Increase in trade and other payables | 990 | 2,082 | 841 |
+---------------------------------------+-------------+-------------+-------------+
| Foreign exchange losses on operating | 94 | - | - |
| activities | | | |
+---------------------------------------+-------------+-------------+-------------+
| | | | |
+---------------------------------------+-------------+-------------+-------------+
| Cash generated (used in)/from | (480) | 2,651 | 2,501 |
| operations | | | |
+---------------------------------------+-------------+-------------+-------------+
| | | | |
+---------------------------------------+-------------+-------------+-------------+
| Interest paid | (12) | (12) | (24) |
+---------------------------------------+-------------+-------------+-------------+
| Income taxes (paid)/received | (7) | 100 | 91 |
+---------------------------------------+-------------+-------------+-------------+
| | | | |
+---------------------------------------+-------------+-------------+-------------+
| Net cash (used in)/from operating | (499) | 2,739 | 2,568 |
| activities | | | |
+---------------------------------------+-------------+-------------+-------------+
| | | | |
+---------------------------------------+-------------+-------------+-------------+
| Cash flows from investing activities | | | |
+---------------------------------------+-------------+-------------+-------------+
| Acquisition of subsidiary | - | (6,405) | (1,075) |
| undertakings | | | |
+---------------------------------------+-------------+-------------+-------------+
| Net cash balances acquired with | - | 85 | 85 |
| subsidiary undertakings | | | |
+---------------------------------------+-------------+-------------+-------------+
| Purchase of property, plant and | (479) | (177) | (361) |
| equipment | | | |
+---------------------------------------+-------------+-------------+-------------+
| Purchase of intangible assets | (639) | (462) | (7,318) |
+---------------------------------------+-------------+-------------+-------------+
| Interest received | 1 | 25 | 34 |
+---------------------------------------+-------------+-------------+-------------+
| | | | |
+---------------------------------------+-------------+-------------+-------------+
| Net cash used in investing activities | (1,117) | (6,934) | (8,635) |
+---------------------------------------+-------------+-------------+-------------+
| | | | |
+---------------------------------------+-------------+-------------+-------------+
| Cash flows from financing activities | | | |
+---------------------------------------+-------------+-------------+-------------+
| Proceeds from issuance of ordinary | 794 | 6,235 | 6,950 |
| shares | | | |
+---------------------------------------+-------------+-------------+-------------+
| | | | |
+---------------------------------------+-------------+-------------+-------------+
| Net cash used in financing activities | 794 | 6,235 | 6,950 |
+---------------------------------------+-------------+-------------+-------------+
| | | | |
+---------------------------------------+-------------+-------------+-------------+
| Net (decrease)/increase in cash and | (822) | 2,040 | 883 |
| cash equivalents | | | |
+---------------------------------------+-------------+-------------+-------------+
| | | | |
+---------------------------------------+-------------+-------------+-------------+
| Cash and cash equivalents at | 1,976 | 1,093 | 1,093 |
| beginning of period | | | |
+---------------------------------------+-------------+-------------+-------------+
| | | | |
+---------------------------------------+-------------+-------------+-------------+
| Net cash at end of period | 1,154 | 3,133 | 1,976 |
+---------------------------------------+-------------+-------------+-------------+
Notes to the interim reports
1. Basis for preparation
This interim report, which has been neither audited nor reviewed by the
company's auditors, was approved by the board of directors on 29 September 2009
and has been prepared under International Financial Reporting Standards (IFRS).
The interim financial statements have been prepared using the same accounting
policies and methods of computation as the audited financial statements prepared
to 31 December 2008 with the exception of the amortisation of domain names,
which is now calculated at 5% on a straight-line basis (2008 policy: 10%
straight-line basis).
2. EBITDA
+------------------------------------------+-----------+--------------+-------------+
| | Six | Six months | Year |
| | months | ending | ending |
| | ending | 30 June | 31 December |
| | 30 June | 2008 | 2008 |
| | 2009 | | |
+------------------------------------------+-----------+--------------+-------------+
| | GBP000's | GBP000's | GBP000's |
+------------------------------------------+-----------+--------------+-------------+
| | | | |
+------------------------------------------+-----------+--------------+-------------+
| Operating (loss)/profit | (1,858) | 693 | 926 |
| (prior to deduction of exceptional | | | |
| items) | | | |
+------------------------------------------+-----------+--------------+-------------+
| | | | |
+------------------------------------------+-----------+--------------+-------------+
| Add back: | | | |
+------------------------------------------+-----------+--------------+-------------+
| Depreciation and amortisation | 1,082 | 219 | 1,279 |
+------------------------------------------+-----------+--------------+-------------+
| Share based payment | 617 | 91 | 229 |
+------------------------------------------+-----------+--------------+-------------+
| Aborted capital projects | 36 | - | - |
+------------------------------------------+-----------+--------------+-------------+
| | | | |
+------------------------------------------+-----------+--------------+-------------+
| EBITDA for the period | (123) | 1,003 | 2,434 |
+------------------------------------------+-----------+--------------+-------------+
| | | | |
+------------------------------------------+-----------+--------------+-------------+
3. Segmental information
During the period, the Group operated two principal classes of business;
interactive gaming & competitions, and mobile telephony services.
For the six months ending 30 June 2009:
+----------------------+--------------+------------+------------+------------+
| | Interactive | Mobile | Central | Total |
| | gaming & | telephony | costs | |
| | competitions | | | |
+----------------------+--------------+------------+------------+------------+
| | GBP000's | GBP000's | GBP000's | GBP000's |
+----------------------+--------------+------------+------------+------------+
| | | | | |
+----------------------+--------------+------------+------------+------------+
| Revenue | | | | |
+----------------------+--------------+------------+------------+------------+
| - continuing | 8,416 | 925 | - | 9,341 |
| operations | | | | |
+----------------------+--------------+------------+------------+------------+
| | 8,416 | 925 | - | 9,341 |
+----------------------+--------------+------------+------------+------------+
| | | | | |
+----------------------+--------------+------------+------------+------------+
| Loss for the period | | | | |
+----------------------+--------------+------------+------------+------------+
| - continuing | (1,984) | 108 | (1,407) | (3,283) |
| operations | | | | |
+----------------------+--------------+------------+------------+------------+
| | (1,984) | 108 | (1,407) | (3,283) |
+----------------------+--------------+------------+------------+------------+
| | | | | |
+----------------------+--------------+------------+------------+------------+
| | | | | |
+----------------------+--------------+------------+------------+------------+
For the six months ending 30 June 2008:
+----------------------+--------------+------------+------------+------------+
| | Interactive | Mobile | Central | Total |
| | gaming & | telephony | costs | |
| | competitions | | | |
+----------------------+--------------+------------+------------+------------+
| | GBP000's | GBP000's | GBP000's | GBP000's |
+----------------------+--------------+------------+------------+------------+
| | | | | |
+----------------------+--------------+------------+------------+------------+
| Revenue | | | | |
+----------------------+--------------+------------+------------+------------+
| - continuing | 9,411 | 718 | - | 10,129 |
| operations | | | | |
+----------------------+--------------+------------+------------+------------+
| | 9,411 | 718 | - | 10,129 |
+----------------------+--------------+------------+------------+------------+
| | | | | |
+----------------------+--------------+------------+------------+------------+
| Profit/(loss) for | | | | |
| the period | | | | |
+----------------------+--------------+------------+------------+------------+
| - continuing | 433 | 235 | (802) | (134) |
| operations | | | | |
+----------------------+--------------+------------+------------+------------+
| | 433 | 235 | (802) | (134) |
+----------------------+--------------+------------+------------+------------+
| | | | | |
+----------------------+--------------+------------+------------+------------+
For the year ending 31 December 2008:
+----------------------+--------------+------------+------------+------------+
| | Interactive | Mobile | Central | Total |
| | gaming & | telephony | costs | |
| | competitions | | | |
+----------------------+--------------+------------+------------+------------+
| | GBP000's | GBP000's | GBP000's | GBP000's |
+----------------------+--------------+------------+------------+------------+
| | | | | |
+----------------------+--------------+------------+------------+------------+
| Revenue | | | | |
+----------------------+--------------+------------+------------+------------+
| - continuing | 18,625 | 1,134 | - | 19,759 |
| operations | | | | |
+----------------------+--------------+------------+------------+------------+
| | 18,625 | 1,134 | - | 19,759 |
+----------------------+--------------+------------+------------+------------+
| | | | | |
+----------------------+--------------+------------+------------+------------+
| Profit/(loss) for | | | | |
| the period | | | | |
+----------------------+--------------+------------+------------+------------+
| - continuing | (118) | 432 | (1,524) | (1,210) |
| operations | | | | |
+----------------------+--------------+------------+------------+------------+
| | (118) | 432 | (1,524) | (1,210) |
+----------------------+--------------+------------+------------+------------+
4. Loss per share
+------------------------------------------+-------------+--------------+-------------+
| | Six | Six months | Year |
| | months | | |
+------------------------------------------+-------------+--------------+-------------+
| | ended | ended | ended |
| | 30 June | 30 June | 31 |
| | 2009 | 2008 | December |
| | | | 2008 |
+------------------------------------------+-------------+--------------+-------------+
| | (unaudited) | (unaudited) | (audited) |
+------------------------------------------+-------------+--------------+-------------+
| | GBP 000's | GBP 000's | GBP 000's |
+------------------------------------------+-------------+--------------+-------------+
| | | | |
+------------------------------------------+-------------+--------------+-------------+
| Loss attributable to shareholders | (3,283) | (134) | (1,210) |
+------------------------------------------+-------------+--------------+-------------+
| | | | |
+------------------------------------------+-------------+--------------+-------------+
| | Number of | Number of | Number of |
| | shares | shares | shares |
+------------------------------------------+-------------+--------------+-------------+
| | | | |
+------------------------------------------+-------------+--------------+-------------+
| Weighted average numbers of shares in | 126,730,839 | 94,177,596 | 107,325,135 |
| issue | | | |
+------------------------------------------+-------------+--------------+-------------+
| Dilution effects of share options | 9,249,452 | 25,629 | 7,026,433 |
+------------------------------------------+-------------+--------------+-------------+
| Dilution effect of employee share | 99,933 | 99,933 | 99,933 |
| schemes | | | |
+------------------------------------------+-------------+--------------+-------------+
| | | | |
+------------------------------------------+-------------+--------------+-------------+
| Diluted weighted average number of | 136,080,224 | 94,303,158 | 114,451,501 |
| shares in issue | | | |
+------------------------------------------+-------------+--------------+-------------+
| | | | |
+------------------------------------------+-------------+--------------+-------------+
| | Pence per | Pence per | Pence per |
| | share | share | share |
+------------------------------------------+-------------+--------------+-------------+
| | | | |
+------------------------------------------+-------------+--------------+-------------+
| Basic loss per share | (2.59) | (0.14) | (1.13) |
+------------------------------------------+-------------+--------------+-------------+
| | | | |
+------------------------------------------+-------------+--------------+-------------+
| | Pence per | Pence per | Pence per |
| | share | share | share |
+------------------------------------------+-------------+--------------+-------------+
| | | | |
+------------------------------------------+-------------+--------------+-------------+
| Diluted loss per share | (2.41) | (0.14) | (1.06) |
+------------------------------------------+-------------+--------------+-------------+
| | | | |
+------------------------------------------+-------------+--------------+-------------+
5. Share Capital
+--------------------------------------+-------------+-------------+--------------+
| | Six months | Six months | Year |
| | ended | ended | ended |
| | 30 June | 30 June | 31 December |
| | 2009 | 2008 | 2008 |
| | (unaudited) | (unaudited) | |
| | GBP000's | GBP000's | (audited) |
| | | | GBP000's |
+--------------------------------------+-------------+-------------+--------------+
| | | | |
+--------------------------------------+-------------+-------------+--------------+
| Balance at beginning of period | 6,162 | 3,802 | 3,802 |
+--------------------------------------+-------------+-------------+--------------+
| New shares issued in period | 675 | 2,216 | 2,360 |
+--------------------------------------+-------------+-------------+--------------+
| | | | |
+--------------------------------------+-------------+-------------+--------------+
| Balance at end of period | 6,837 | 6,018 | 6,162 |
+--------------------------------------+-------------+-------------+--------------+
| | | | |
+--------------------------------------+-------------+-------------+--------------+
| | | | |
+--------------------------------------+-------------+-------------+--------------+
| | Six months |
| | ended 30 |
| | June 2009 |
| | Shares |
+------------------------------------------------------------------+--------------+
| | |
+------------------------------------------------------------------+--------------+
| Balance of shares in issue at the beginning of the period | 123,242,859 |
+------------------------------------------------------------------+--------------+
| Share consideration in relation to the acquisition of the | 8,533,333 |
| Two-Way Gaming assets | |
+------------------------------------------------------------------+--------------+
| Placing of shares | 4,444,444 |
+------------------------------------------------------------------+--------------+
| Employee share options exercised | 523,333 |
+------------------------------------------------------------------+--------------+
| | |
+------------------------------------------------------------------+--------------+
| | 136,743,969 |
+--------------------------------------+-------------+-------------+--------------+
6. Acquisition
On 12 May 2009 the Company completed the acquisition of the trading assets of
Two-Way Gaming Limited. The acquisition included the trading assets and database
of 16,000 registered players of the Challenge Jackpot service, a service which
NetPlay has produced for Virgin Media TV as of the same date.
7. Material events subsequent to the period end
On 13 July 2009 the Company announced that it has entered into an agreement with
Stanleybet International to provide NetPlay games on dedicated betting
terminals, initially in 100 of Stanleybet's 1,400 betting shops.
On 20 July 2009 the Company announced a TV distribution deal with STV Group plc
to provide Scotland's first live interactive TV casino on a national terrestrial
broadcast channel. The service launched in September.
On 14 August 2009 the Company's shareholders passed the resolution to issue
58,352,476 new ordinary shares to Directforce Trading Limited, who currently
hold 29.9% of the enlarged share capital. NetPlay also committed to a five year
agreement with Playtech, a gaming software provider. Playtech will provide the
software for NetPlay across all brands.
On 7 September 2009 the Company announced the signing of a legally binding heads
of agreement to enter into a five year airtime deal with Channel Five
Broadcasting Limited. Channel Five became NetPlay's second terrestrial TV
partner after the announcement of the STV distribution deal on 20 July 2009.
Following an initial trial with Channel Five in August the service launched in
September.
8. Interim statement
A copy of this statement will be on the Company's website at
http://www.netplaytv.plc.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR EAANNAESNEAE
|