Netplay Preliminary Results

Date : 06/22/2009 @ 2:00AM
Source : UK Regulatory (RNS and others)
Stock : Netplay (NPT)
Quote : 25.0  -0.5 (-1.96%) @ 4:50AM
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Netplay Preliminary Results

 
TIDMNPT 
 
RNS Number : 2386U 
Netplay TV PLC 
22 June 2009 
 
? 
+-----------------+------------------------------------------------------------+ 
| Date:           | 22 June 2009                                               | 
+-----------------+------------------------------------------------------------+ 
| On behalf of:   | NetPlay TV plc ('NetPlay TV', 'the Company' or 'the        | 
|                 | Group')                                                    | 
+-----------------+------------------------------------------------------------+ 
| Embargoed       | 0700hrs                                                    | 
| until:          |                                                            | 
+-----------------+------------------------------------------------------------+ 
 
 
NetPlay TV plc 
Preliminary Results for the year ended 31 December 2008 
 
 
NetPlay TV plc (AIM: NPT), the interactive gaming company, is pleased to provide 
shareholders with a trading update on its business, as well as the financial 
results for the financial year ending 31 December 2008. 
Highlights 
  *  118% increase in revenue for full year 2008 operations to GBP19.8m 
  (2007: GBP9.1m^) 
  *  Positive EBITDA* of GBP2.4m (2007: GBP1.7m^ loss) 
  *  Over 80% growth for SuperCasino.com with annual gross bets increasing to GBP243m 
  (2007: GBP133m) 
  *  Group monthly gross bets and skill gaming revenue for May 2009 exceed GBP39m 
  (this includes 20 days of Challenge Jackpot gross bets). 
  *  Trading for the first quarter of 2009 is in line with budget showing an EBITDA 
  figure of GBP455k. 
  *  Strategic move into B2B branded solutions offering for retail, TV and online 
  partners. 
  *  Acquisitions of: - 7,600 mobile quiz subscribers from Rubberduck on 10 March 2008 - Bingos.com on 16 April 2008 - Sky Channel 848 on 6 May 2008 - Pitch Gaming database on 27 May 2008 - Info-Download assets on 31 December 2008 
 
* EBITDA quoted is before exceptional items totalling GBP0.6m  and IFRS 2 share 
based payment charges of GBP0.2m. 
^ Restated 
 
 
Post Balance Sheet Events: 
  *  Successful launch of 'Daily SuperDraw' on Channel Five in May 2009 
  *  Successful launch of 'Beat the Brain' on FX channels with Fox International 
  *  Successful acquisition of Two Way Gaming assets and player database on 12 May 
  2009 
  *  Agreement with Virgin Media Television to take over the production and brand 
  licence agreement for Challenge Jackpot on 12 May 2009 
  *  Currently in advanced discussions to sign a first retail partnership agreement 
 
 
 
Clive Jones, Non-Executive Chairman, said: 
 
 
"NetPlay TV has come of age. The business has been transformed during the course 
of the year into a significantly larger interactive media business. The demand 
for "live" gaming is starting to gather momentum and we are uniquely positioned 
to take advantage of this major opportunity.  The UK Government is committed to 
the delivery of a fast Internet service for all and, as such, TV quality 
interactive programming is now available to an increased and growing number of 
UK homes." 
 
 
Martin Higginson, Chief Executive Officer, added: 
 
 
"2009 has seen the investment we have made in 2007/08 start to come to fruition. 
During 2008, the Group posted its first positive EBITDA* since its 
transformation from a mobile content business into an interactive TV gaming 
business. 
 
 
"The Company has never been better placed to take advantage of the numerous 
opportunities that lie ahead. We will continue to invest in the business as we 
strive to deliver the next generation of interactive gaming." 
 
 
Enquiries: 
 
 
+--------------------------------------+--------------------------------------+ 
| NetPlay TV plc                       | www.netplaytv.plc.uk                 | 
+--------------------------------------+--------------------------------------+ 
| Martin Higginson, Executive Chairman |                                      | 
+--------------------------------------+--------------------------------------+ 
| Via Redleaf                          |                                      | 
+--------------------------------------+--------------------------------------+ 
|                                      |                                      | 
+--------------------------------------+--------------------------------------+ 
| Redleaf Communications               | Tel: 020 7566 6700                   | 
+--------------------------------------+--------------------------------------+ 
| Emma Kane/Sanna Sumner/Mike Ward     | netplay@redleafpr.com                | 
+--------------------------------------+--------------------------------------+ 
|                                      |                                      | 
+--------------------------------------+--------------------------------------+ 
| Panmure Gordon                       | Tel: 020 7459 3600                   | 
+--------------------------------------+--------------------------------------+ 
| Adam Pollock                         |                                      | 
+--------------------------------------+--------------------------------------+ 
| Andrew Burnett                       |                                      | 
+--------------------------------------+--------------------------------------+ 
| Katherine Roe                        |                                      | 
+--------------------------------------+--------------------------------------+ 
| Stuart Gledhill                      |                                      | 
+--------------------------------------+--------------------------------------+ 
 
 
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, and 
Malta, including SuperCasino.com, Bingos.com and EuroTeleMillions.com. These 
services can also be viewed live on television on Sky Channel 866 - 24 hours a 
day, Freeview Channel 48 from 9pm - 5am and FreeSat Channel 851. The Company 
recently took over the production of the 'Challenge Jackpot' brand on behalf of 
Virgin Media Television which airs 24/7 on Virgin Media, Sky and three hours per 
day on Bravo 2 and Virgin 1. 
 
 
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. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CHAIRMAN'S STATEMENT 
 
 
In 2007, the Company undertook a transformation from a mobile content business 
into an interactive TV gaming business and 2008 saw the Group post its first 
positive EBITDA* contribution since this transformation. 
 
 
During the year ended 31 December 2008, the Group's turnover for the year was 
GBP19.8m (2007: GBP9.1m^) with a positive EBITDA* contribution of GBP2.4m (2007: 
Loss of GBP1.7m^), an increase in growth of 241% 
 
 
The past year saw the Company complete a number of acquisitions, as well as 
continue investment in its core products and services. The belief that in time 
consumers would firstly demand a "live" gaming experience on their PCs and 
secondly would want interaction through their mobile phone is beginning to prove 
correct. 
 
 
The acquisitions throughout the year have underpinned this belief and have 
focused on ensuring we  have the right products and services for the consumer. 
On the interactive TV front we acquired a new Sky channel, channel 867 
(previously channel 848), in May 2008, followed by the acquisition of a 
competitor's database, Pitch Gaming, also in May 2008, allowing us to offer 
their customers a "live" casino TV service. The re-naming of our "Live Roulette" 
channel to SuperCasino.com saw the introduction of "Live BlackJack" to the show 
as well as introducing additional online games to the websites. This has allowed 
us to offer a truly integrated offering to our casino customers. 
 
 
The acquisition of a database of 7,600 mobile quiz players from Rubberduck in 
March 2008, as well as acquiring the assets of Info-Download Limited in December 
2008, further underpinned our focus and investment in the growing mobile gaming 
arena. 
 
 
On April 16 2008, the Company made its biggest acquisition to date, acquiring 
Bingos.com. During 2008, the employees of Bingos.com were successfully 
integrated into the Group, allowing the Company to capitalise on synergies 
post-acquisition. We believe bingo is an integral part of interactive gaming and 
the combination of online bingo with TV and mobile distribution platforms will 
be the future for the industry. 
 
 
In June 2008, our contract to air live SuperCasino.com shows on Virgin 1 and 
Bravo came to an end and saw Virgin Media Television launch its own interactive 
gaming show, Challenge Jackpot, produced by Two Way Media Limited. In May 2009, 
the Group won the contract to produce the Challenge Jackpot show, as well as to 
further develop the brand and add new gaming formats until 2013. We acquired the 
Challenge Jackpot assets and key employees of Two Way Media, the incumbent 
producer. 
 
 
Winning the Virgin Media Television contract has been a key milestone for the 
business. It has allowed us to further expand our TV assets as well as giving us 
a fantastic platform for the development of new interactive TV formats both in 
the UK and overseas. The Two Way Media staff have been re-deployed to create a 
new business development unit focused on offering our "live" video rich 
interactive services to new partners, including retail, TV broadcasters, and 
online companies. 
 
 
This new business unit has hit the ground running, and we are today in advanced 
talks with an international betting shop operator, as well as a major 
broadcaster about rolling our SuperCasino.com format out to their customers.  We 
hope to update the market in the next few weeks on both of these opportunities. 
 
 
* EBITDA quoted is before exceptional items totalling GBP0.6m  and IFRS 2 share 
based payment charges of GBP0.2m. 
^ Restated 
 
Board Changes 
 
 
I was delighted to join the Board in June this year as Non-Executive Chairman. 
The Company is extremely well positioned in the interactive gaming market and I 
relish the opportunity to help it achieve its goal of becoming a leading media 
business with a difference. 
 
 
We announced the departure of Dominic Mansour, former CEO of the acquired 
Bingos.com business on April 16th 2009. 
 
 
Outlook 
 
 
Over the past two years the Group has perfected its interactive offering and is 
now uniquely placed to take advantage of the surge in consumer demand as well as 
the many commercial opportunities now arising.  We have a robust, fully 
regulated business which is widely recognised as the market leaders. We must now 
continue to monetise this position and deliver increased shareholder value. 
 
 
As a result of the continued investment, the Company is now widely recognised as 
the market leaders in the delivery of TV quality interactive gambling formats. 
 
 
Clive Jones 
Non-Executive Chairman 
21 June 2009 
 
 
CHIEF EXECUTIVE OFFICER'S STATEMENT 
 
 
2009 has seen the investment made in 2007/08 start to come to fruition. With 
faster broadband speeds becoming increasing accessible the demand from consumers 
for "live" interactive gaming products is growing at a rapid pace. We predict 
this demand will continue to grow as internet connectivity speeds become faster, 
allowing users to watch more TV quality programmes on their PCs. 
 
 
Financial Overview 
 
 
The Group turnover for the year increased 118% to GBP19.8m (2007: GBP9.1m^) with 
a positive EBITDA* of GBP2.4m (2007: Loss of GBP1.7m^), an increase in growth of 
241%. 
 
 
The Group's total cash balance as 31 December 2008 was GBP2.0m (2007: GBP1.3m). 
 
 
Exceptional costs within the period totalled GBP0.6m.  This amount is mostly 
attributable to the re-organisation of the Bingos.com business post-acquisition, 
including the closure of the main office in Spain. 
 
An impairment of goodwill was expensed in the period of GBP1.4m, relating to the 
premium rate scratchcard business as detailed below. 
 
 
2008 continued to be a year of tremendous growth for our SuperCasino.com 
business.  Gross bets on this service averaged GBP20.3m per month during 2008, 
compared to average monthly bets of GBP11.1m in 2007, an annual growth of 83%. 
 
 
During the period, NetPlay TV became a key player in the online bingo industry 
following the acquisition of Bingos.com.  In December 2008 gross bets were at a 
run rate of GBP10.4m. This business, both revenue and profit, has remained 
fairly flat over the year mainly due to reorganisation, and integration of staff 
into our UK operations. 
 
 
We continue to invest in a converged bingo offering and have made great progress 
in integrating mobile and TV platforms.  Early tests in 2009 have proved 
successful and we look forward to rolling out these products in the second half 
of the year. 
 
 
2009 has seen exceptional growth in our mobile business. Gross bets and revenue 
in Q1 2009 were GBP1.6m compared to GBP0.3m in Q1 2008.  Following the 
acquisition in December 2008 of the Info-Download assets, we are now taking bets 
through mobile phone with current bets exceeding GBP0.4m per month. We plan to 
expand our mobile offering, including integrating a mobile solution in to our 
SuperCasino.com business in the second half of the year. 
 
 
During the year, the Group undertook a full review of player balances and found 
that liabilities in 2007 to players had been understated.  The financials have 
been restated accordingly, resulting in an increase of trade and other payables 
at 31 December 2007 by GBP341,000 and increase the loss for the year ended 31 
December 2007 by GBP341,000. 
 
 
* EBITDA quoted is before exceptional items totalling GBP0.6m  and IFRS 2 share 
based payment charges of GBP0.2m. 
^Restated 
 
 
Operational Review 
 
 
The recent deal with Virgin Media Television and Two Way Media was 
transformational in the expansion of the Group.  The evolution of the Challenge 
Jackpot brand for Virgin Media TV will see new interactive TV games launched 
over the coming months further underpinning our position as leaders in this 
market. 
 
 
The Two Way Media staff, headed by Guy Templer, former CEO of the business, 
heads our new business development team; a dedicated unit focusing on expanding 
into the B2B market offering our "live" interactive games to new clients, 
including retail, TV and online partners. 
 
 
We are today in advanced talks with a major international betting shop chain 
about deploying our live games into their retail outlets. 
 
 
With continued investment in our services we are now able to demonstrate to 
existing and new partners that our "live" products outperform their digitised 
equivalent by a factor of 6:1. This, combined with increased consumer demand, 
means that the Company is in an excellent position to leverage our services via 
a number of different channels to market. . 
 
 
The recent launch of "Daily SuperDraw" on Channel Five was a major step for the 
Group, linking TV commercial airtime with a mobile entry point and ongoing 
internet activity. We will continue to develop this converged solution through 
the remainder of 2009. We look forward to updating the shareholders when the 
interim results are announced with more information on this specific service. 
 
 
We have seen a further delay of an additional six months in moving 
SuperCasino.com operations offshore, mainly as a result of concluding the Virgin 
Media Television deal, which took almost six months.  This will have an impact 
on the 2009 profitability, however, as a result of concluding the deal, we are 
now able to establish additional TV studios offshore allowing us to offer a 
variety of "live" services in a low tax jurisdiction to both our own brands and 
new partners.  We are in the process of securing a new gaming license in 
Alderney, adding to our operations in the UK and Malta.  With the combination of 
the new offshore studio and our UK TV facilities we are now uniquely positioned 
to offer "live" services to a number of partners. 
 
Following a comprehensive review of our interactive telephone gaming division, 
we have decided to exit the premium rate telephone scratch card business and 
focus on growing our interactive TV gaming formats with broadcast partners. 
 Whilst the subsidiary, (Abstract Games Limited), did produce excellent results, 
it also incurred a regulatory fine and negative publicity during its earn-out 
period.  Whilst we are appealing the regulator fine we feel the potential 
negative publicity around this type of business outweighs the short term 
profits. We believe this decision will ensure our continued growth in partnering 
with major TV companies, and "blue chip" brands alike. We are currently in 
negotiation with the vendors of Abstract Games Limited on the final payment of 
their earn-out pending the appeal of the regulator fine incurred by them during 
the earn out. The Company has incurred a "write down" of the goodwill of 
GBP1.4m. 
 
 
We believe consumer demand for mobile gaming will increase dramatically over the 
coming years and we want to ensure we are well positioned as a business to take 
advantage of this demand. We believe the integration of mobile distribution 
platforms into our gaming operations to be pivotal and as such we are committed 
to additional investment in this area for 2009.  We recently had our new mobile 
quiz game, "Lucky Numbers" approved by the telephone regulator, Phone Pay Plus. 
 
 
The reclassification of TV gaming as teleshopping has opened up new 
opportunities for us with terrestrial broadcasters.  This in combination with 
new channels in both retail, and online, plus our existing brands will enable us 
to leverage our core assets and maximise profits. 
 
The Company has never been better placed to take advantage of the opportunities 
that lie ahead.  We will continue to invest in the business as we strive to 
deliver the next generation of interactive gaming businesses. 
 
 
Current Trading 
 
 
Trading for the first quarter of 2009 resulted in an EBITDA of GBP455k. 
 
 
Gross gaming revenues for the first quarter were GBP96m, an increase of 52% 
compared to GBP63m for first quarter of 2008.  Overall our gross bets continue 
to grow with May revenues exceeding GBP39m.  This includes 20 days of Challenge 
Jackpot gross bets. 
 
 
We have seen particularly strong growth in our mobile revenues in the first 
quarter with total gross revenues for the period exceeding GBP1.6m compared to 
GBP0.3m for the same period in 2008. 
 
 
The decision to cease the premium rate scratch card business at the end of the 
Abstract Games Limited earn-out in February will have an impact on the March 
onwards EBITDA number although we believe this will be replaced by better 
quality revenues in the second half of the year.  In addition the delay in 
moving SuperCasino.com offshore will also have an impact on the profitability 
however this will be short term as plans are now well under way to ensure its 
smooth transition to an offshore jurisdiction by Q3 2009. 
 
 
Revenues from the Challenge Jackpot service have started well and with a 
dedicated team focused on improving the TV show and the consumer experience we 
expect these to grow in coming months. 
 
 
The Daily SuperDraw operating through a commercial relationship with Channel 
Five has started well with over 110,000 unique players in the first four weeks. 
 
 
Early signs from our new business development team are very encouraging as they 
focus on offering our products to new partners in the retail, TV and online 
space.  We are currently in advanced talks with an international betting shop 
chain and a major broadcaster about the distribution of our services. We hope to 
be able to update the market on both these transactions within the next few 
weeks. 
 
 
Overall we are pleased with the current trading although cognisant of the short 
term impact of ceasing certain activities in order to secure better quality 
earnings as we move forward. 
 
 
 
 
 
 
Martin Higginson 
Chief Executive Officer 
21 June 2009 
 
NetPlay TV plc 
Consolidated income statement 
for the year ended 31 December 2008 
+----------------------------------------+------+--------------+--------------+ 
|                                        |      |   Year ended |   Year ended | 
|                                        |      |  31 December | 31 December  | 
|                                        |      |         2008 |         2007 | 
+----------------------------------------+------+--------------+--------------+ 
|                                        | Note |    GBP 000's |    GBP 000's | 
+----------------------------------------+------+--------------+--------------+ 
|                                        |      |              |     Restated | 
+----------------------------------------+------+--------------+--------------+ 
|                                        |      |              |              | 
+----------------------------------------+------+--------------+--------------+ 
| Revenue                                |      |       19,759 |        9,070 | 
+----------------------------------------+------+--------------+--------------+ 
|                                        |      |              |              | 
+----------------------------------------+------+--------------+--------------+ 
| Cost of sales                          |      |     (12,924) |      (7,788) | 
+----------------------------------------+------+--------------+--------------+ 
|                                        |      |              |              | 
+----------------------------------------+------+--------------+--------------+ 
| Gross profit                           |      |        6,835 |        1,282 | 
+----------------------------------------+------+--------------+--------------+ 
|                                        |      |              |              | 
+----------------------------------------+------+--------------+--------------+ 
| Administrative expenses                |      |      (5,909) |      (3,128) | 
+----------------------------------------+------+--------------+--------------+ 
|                                        |      |              |              | 
+----------------------------------------+------+--------------+--------------+ 
| Group operating profit/(loss) from     |      |          926 |      (1,846) | 
| continuing operations                  |      |              |              | 
+----------------------------------------+------+--------------+--------------+ 
|                                        |      |              |              | 
+----------------------------------------+------+--------------+--------------+ 
| Exceptional items                      |      |        (563) |        (169) | 
+----------------------------------------+------+--------------+--------------+ 
|                                        |      |              |              | 
+----------------------------------------+------+--------------+--------------+ 
| Impairment of goodwill                 |      |      (1,415) |      (2,446) | 
+----------------------------------------+------+--------------+--------------+ 
|                                        |      |              |              | 
+----------------------------------------+------+--------------+--------------+ 
| Negative goodwill                      |      |           49 |            - | 
+----------------------------------------+------+--------------+--------------+ 
|                                        |      |              |              | 
+----------------------------------------+------+--------------+--------------+ 
| Finance income                         |      |           34 |          133 | 
+----------------------------------------+------+--------------+--------------+ 
|                                        |      |              |              | 
+----------------------------------------+------+--------------+--------------+ 
| Finance costs                          |      |         (24) |         (21) | 
+----------------------------------------+------+--------------+--------------+ 
|                                        |      |              |              | 
+----------------------------------------+------+--------------+--------------+ 
| Loss before taxation                   |      |        (993) |      (4,349) | 
+----------------------------------------+------+--------------+--------------+ 
|                                        |      |              |              | 
+----------------------------------------+------+--------------+--------------+ 
| Income tax expense                     |  8   |        (217) |         (49) | 
+----------------------------------------+------+--------------+--------------+ 
|                                        |      |              |              | 
+----------------------------------------+------+--------------+--------------+ 
| Loss from continuing operations        |      |      (1,210) |      (4,398) | 
+----------------------------------------+------+--------------+--------------+ 
|                                        |      |              |              | 
+----------------------------------------+------+--------------+--------------+ 
| Loss from discontinued operations      |      |            - |        (935) | 
+----------------------------------------+------+--------------+--------------+ 
|                                        |      |              |              | 
+----------------------------------------+------+--------------+--------------+ 
| Loss for the financial year            |      |      (1,210) |      (5,333) | 
+----------------------------------------+------+--------------+--------------+ 
|                                        |      |              |              | 
+----------------------------------------+------+--------------+--------------+ 
| Loss  per share                        |      |              |              | 
+----------------------------------------+------+--------------+--------------+ 
|                                        |      |              |              | 
+----------------------------------------+------+--------------+--------------+ 
| Basic (p) (continuing operations)      |  5   |       (1.13) |       (6.39) | 
+----------------------------------------+------+--------------+--------------+ 
| Diluted (p) (continuing operations)    |  5   |       (1.06) |       (6.34) | 
+----------------------------------------+------+--------------+--------------+ 
| Basic (p) (total operations)           |  5   |       (1.13) |       (7.75) | 
+----------------------------------------+------+--------------+--------------+ 
| Diluted (p) (total operations)         |  5   |       (1.06) |       (7.69) | 
+----------------------------------------+------+--------------+--------------+ 
 
 
 
 
Consolidated statement of changes in equity 
for the year ended 31 December 2008 
 
 
+--------------------+---------+----------+---------+----------+----------+---------+ 
|                    |   Share |    Share |  Merger |    Other | Retained |   Total | 
|                    | capital |  premium | reserve | reserves | earnings |         | 
+--------------------+---------+----------+---------+----------+----------+---------+ 
|                    |     GBP |      GBP |     GBP |      GBP |      GBP |     GBP | 
|                    |   000's |    000's |   000's |    000's |    000's |   000's | 
+--------------------+---------+----------+---------+----------+----------+---------+ 
|                    |         |          |         |          |          |         | 
+--------------------+---------+----------+---------+----------+----------+---------+ 
| As at 1 January    |   3,397 |    2,798 |   1,317 |      560 |    1,532 |   9,604 | 
| 2007               |         |          |         |          |          |         | 
+--------------------+---------+----------+---------+----------+----------+---------+ 
|                    |         |          |         |          |          |         | 
+--------------------+---------+----------+---------+----------+----------+---------+ 
| Shares issued for  |      60 |        - |     140 |        - |        - |     200 | 
| purchase           |         |          |         |          |          |         | 
| consideration      |         |          |         |          |          |         | 
+--------------------+---------+----------+---------+----------+----------+---------+ 
|                    |         |          |         |          |          |         | 
+--------------------+---------+----------+---------+----------+----------+---------+ 
| Shares issued via  |     345 |      795 |       - |        - |        - |   1,140 | 
| placing            |         |          |         |          |          |         | 
+--------------------+---------+----------+---------+----------+----------+---------+ 
|                    |         |          |         |          |          |         | 
+--------------------+---------+----------+---------+----------+----------+---------+ 
| Transfer between   |       - |        - |       - |    (415) |      415 |       - | 
| reserves*          |         |          |         |          |          |         | 
+--------------------+---------+----------+---------+----------+----------+---------+ 
|                    |         |          |         |          |          |         | 
+--------------------+---------+----------+---------+----------+----------+---------+ 
| Share based        |       - |        - |       - |      119 |        - |     119 | 
| payments charge in |         |          |         |          |          |         | 
| period             |         |          |         |          |          |         | 
+--------------------+---------+----------+---------+----------+----------+---------+ 
|                    |         |          |         |          |          |         | 
+--------------------+---------+----------+---------+----------+----------+---------+ 
| Investment in own  |       - |        - |       - |        4 |        - |       4 | 
| shares             |         |          |         |          |          |         | 
+--------------------+---------+----------+---------+----------+----------+---------+ 
|                    |         |          |         |          |          |         | 
+--------------------+---------+----------+---------+----------+----------+---------+ 
| Loss for the       |       - |        - |       - |        - |  (4,992) | (4,992) | 
| period             |         |          |         |          |          |         | 
+--------------------+---------+----------+---------+----------+----------+---------+ 
|                    |         |          |         |          |          |         | 
+--------------------+---------+----------+---------+----------+----------+---------+ 
| As at 31 December  |   3,802 |    3,593 |   1,457 |      268 |  (3,045) |   6,075 | 
| 2007               |         |          |         |          |          |         | 
+--------------------+---------+----------+---------+----------+----------+---------+ 
|                    |         |          |         |          |          |         | 
+--------------------+---------+----------+---------+----------+----------+---------+ 
| Restatement        |         |          |         |          |          |         | 
+--------------------+---------+----------+---------+----------+----------+---------+ 
| Amendment of       |       - |        - |       - |        - |    (341) |   (341) | 
| client balances    |         |          |         |          |          |         | 
+--------------------+---------+----------+---------+----------+----------+---------+ 
|                    |         |          |         |          |          |         | 
+--------------------+---------+----------+---------+----------+----------+---------+ 
| Restated at 31     |   3,802 |    3,593 |   1,457 |      268 |  (3,386) |   5,734 | 
| December 2007      |         |          |         |          |          |         | 
+--------------------+---------+----------+---------+----------+----------+---------+ 
|                    |         |          |         |          |          |         | 
+--------------------+---------+----------+---------+----------+----------+---------+ 
| Shares issued for  |     360 |    1,185 |       - |        - |        - |   1,545 | 
| purchase           |         |          |         |          |          |         | 
| consideration      |         |          |         |          |          |         | 
+--------------------+---------+----------+---------+----------+----------+---------+ 
|                    |         |          |         |          |          |         | 
+--------------------+---------+----------+---------+----------+----------+---------+ 
| Shares issued via  |   2,000 |    4,000 |       - |        - |        - |   6,000 | 
| placing            |         |          |         |          |          |         | 
+--------------------+---------+----------+---------+----------+----------+---------+ 
|                    |         |          |         |          |          |         | 
+--------------------+---------+----------+---------+----------+----------+---------+ 
| Costs of issuing   |         |     (15) |         |          |          |    (15) | 
| shares             |         |          |         |          |          |         | 
+--------------------+---------+----------+---------+----------+----------+---------+ 
|                    |         |          |         |          |          |         | 
+--------------------+---------+----------+---------+----------+----------+---------+ 
| Transfer between   |       - |        - |       - |    (126) |      126 |       - | 
| reserves*          |         |          |         |          |          |         | 
+--------------------+---------+----------+---------+----------+----------+---------+ 
|                    |         |          |         |          |          |         | 
+--------------------+---------+----------+---------+----------+----------+---------+ 
| Share based        |       - |        - |       - |      229 |        - |     229 | 
| payments charge in |         |          |         |          |          |         | 
| period             |         |          |         |          |          |         | 
+--------------------+---------+----------+---------+----------+----------+---------+ 
|                    |         |          |         |          |          |         | 
+--------------------+---------+----------+---------+----------+----------+---------+ 
| Loss for the       |       - |        - |       - |        - |  (1,210) | (1,210) | 
| period             |         |          |         |          |          |         | 
+--------------------+---------+----------+---------+----------+----------+---------+ 
|                    |         |          |         |          |          |         | 
+--------------------+---------+----------+---------+----------+----------+---------+ 
| As at 31 December  |   6,162 |    8,763 |   1,457 |      371 |  (4,470) |  12,283 | 
| 2008               |         |          |         |          |          |         | 
+--------------------+---------+----------+---------+----------+----------+---------+ 
 
 
Other reserves are comprised of the share based payments reserve and holdings in 
the Company's own shares. 
 
 
*The transfer between reserves is in relation to share based payments charges 
for options lapsed during the period. 
 
 
 
 
NetPlay TV plc 
Consolidated balance sheet 
as at 31 December 2008 
+-------------------------------------------+------+------------+------------+ 
|                                           |      | Year ended | Year ended | 
|                                           |      |         31 |        31  | 
|                                           |      |   December |   December | 
|                                           |      |       2008 |       2007 | 
+-------------------------------------------+------+------------+------------+ 
|                                           | Note |            |   Restated | 
+-------------------------------------------+------+------------+------------+ 
|                                           |      |  GBP 000's |  GBP 000's | 
+-------------------------------------------+------+------------+------------+ 
|                                           |      |            |            | 
+-------------------------------------------+------+------------+------------+ 
| ASSETS                                    |      |            |            | 
+-------------------------------------------+------+------------+------------+ 
|                                           |      |            |            | 
+-------------------------------------------+------+------------+------------+ 
| Non-current assets                        |      |            |            | 
+-------------------------------------------+------+------------+------------+ 
| Property, plant and equipment             |      |        809 |        384 | 
+-------------------------------------------+------+------------+------------+ 
| Goodwill                                  |      |      5,084 |      6,714 | 
+-------------------------------------------+------+------------+------------+ 
| Intangible assets                         |      |      7,528 |          - | 
+-------------------------------------------+------+------------+------------+ 
| Deferred tax assets                       |      |          1 |         25 | 
+-------------------------------------------+------+------------+------------+ 
|                                           |      |            |            | 
+-------------------------------------------+------+------------+------------+ 
| Total non-current assets                  |      |     13,422 |      7,123 | 
+-------------------------------------------+------+------------+------------+ 
|                                           |      |            |            | 
+-------------------------------------------+------+------------+------------+ 
| Current assets                            |      |            |            | 
+-------------------------------------------+------+------------+------------+ 
| Inventories                               |      |         57 |        158 | 
+-------------------------------------------+------+------------+------------+ 
| Trade and other receivables               |      |      2,656 |      2,798 | 
+-------------------------------------------+------+------------+------------+ 
| Current tax receivable                    |      |          - |        123 | 
+-------------------------------------------+------+------------+------------+ 
| Cash and cash equivalents                 |      |      2,015 |      1,313 | 
+-------------------------------------------+------+------------+------------+ 
|                                           |      |            |            | 
+-------------------------------------------+------+------------+------------+ 
| Total current assets                      |      |      4,728 |      4,392 | 
+-------------------------------------------+------+------------+------------+ 
|                                           |      |            |            | 
+-------------------------------------------+------+------------+------------+ 
| TOTAL ASSETS                              |      |     18,150 |     11,515 | 
+-------------------------------------------+------+------------+------------+ 
|                                           |      |            |            | 
+-------------------------------------------+------+------------+------------+ 
|                                           |      |            |            | 
+-------------------------------------------+------+------------+------------+ 
| EQUITY AND LIABILITIES                    |      |            |            | 
+-------------------------------------------+------+------------+------------+ 
|                                           |      |            |            | 
+-------------------------------------------+------+------------+------------+ 
| Share capital                             |  6   |      6,162 |      3,802 | 
+-------------------------------------------+------+------------+------------+ 
| Share premium                             |  7   |      8,763 |      3,593 | 
+-------------------------------------------+------+------------+------------+ 
| Merger reserve                            |      |      1,457 |      1,457 | 
+-------------------------------------------+------+------------+------------+ 
| Other reserves                            |  7   |        371 |        268 | 
+-------------------------------------------+------+------------+------------+ 
| Retained earnings                         |      |    (4,470) |    (3,386) | 
+-------------------------------------------+------+------------+------------+ 
|                                           |      |            |            | 
+-------------------------------------------+------+------------+------------+ 
| Total equity                              |      |     12,283 |      5,734 | 
+-------------------------------------------+------+------------+------------+ 
|                                           |      |            |            | 
+-------------------------------------------+------+------------+------------+ 
| Non-current liabilities                   |      |            |            | 
+-------------------------------------------+------+------------+------------+ 
| Financial liabilities                     |      |         64 |      2,530 | 
+-------------------------------------------+------+------------+------------+ 
|                                           |      |            |            | 
+-------------------------------------------+------+------------+------------+ 
| Total non-current liabilities             |      |         64 |      2,530 | 
+-------------------------------------------+------+------------+------------+ 
|                                           |      |            |            | 
+-------------------------------------------+------+------------+------------+ 
|                                           |      |            |            | 
+-------------------------------------------+------+------------+------------+ 
|                                           |      |            |            | 
+-------------------------------------------+------+------------+------------+ 
|                                           |      |            |            | 
+-------------------------------------------+------+------------+------------+ 
| Current liabilities                       |      |            |            | 
+-------------------------------------------+------+------------+------------+ 
| Financial liabilities                     |      |      2,077 |        970 | 
+-------------------------------------------+------+------------+------------+ 
| Trade and other payables                  |      |      3,511 |      2,061 | 
+-------------------------------------------+------+------------+------------+ 
| Current income tax liabilities            |      |        176 |          - | 
+-------------------------------------------+------+------------+------------+ 
| Borrowings                                |      |         39 |        220 | 
+-------------------------------------------+------+------------+------------+ 
|                                           |      |            |            | 
+-------------------------------------------+------+------------+------------+ 
| Total current liabilities                 |      |      5,803 |      3,251 | 
+-------------------------------------------+------+------------+------------+ 
|                                           |      |            |            | 
+-------------------------------------------+------+------------+------------+ 
| TOTAL EQUITY AND LIABILITIES              |      |     18,150 |     11,515 | 
+-------------------------------------------+------+------------+------------+ 
|                                           |      |            |            | 
+-------------------------------------------+------+------------+------------+ 
 
 
 
 
NetPlay TV plc 
Consolidated cash flow statement 
for the year ended 31 December 2008 
+--------------------------------------------+------+-----------+-----------+ 
|                                            |      |      Year |      Year | 
|                                            |      |     ended |     ended | 
|                                            |      |        31 |        31 | 
|                                            |      |  December |  December | 
|                                            |      |      2008 |      2007 | 
+--------------------------------------------+------+-----------+-----------+ 
|                                            |      |           |  Restated | 
+--------------------------------------------+------+-----------+-----------+ 
|                                            |      | GBP 000's | GBP 000's | 
+--------------------------------------------+------+-----------+-----------+ 
|                                            |      |           |           | 
+--------------------------------------------+------+-----------+-----------+ 
| Cash flows from operating activities       |      |           |           | 
+--------------------------------------------+------+-----------+-----------+ 
| Operating profit/(loss) from continuing    |      |       926 |   (1,846) | 
| operations                                 |      |           |           | 
+--------------------------------------------+------+-----------+-----------+ 
|                                            |      |           |           | 
+--------------------------------------------+------+-----------+-----------+ 
| Adjustments for:                           |      |           |           | 
+--------------------------------------------+------+-----------+-----------+ 
| Depreciation and amortisation              |      |     1,279 |       151 | 
+--------------------------------------------+------+-----------+-----------+ 
| Share based payments and similar           |      |       229 |       123 | 
+--------------------------------------------+------+-----------+-----------+ 
| Exceptional items                          |      |     (563) |     (169) | 
+--------------------------------------------+------+-----------+-----------+ 
|                                            |      |           |           | 
+--------------------------------------------+------+-----------+-----------+ 
| Decrease/(increase) in inventories         |      |       101 |     (128) | 
+--------------------------------------------+------+-----------+-----------+ 
| Decrease/(increase) in trade and other     |      |     (312) |     (209) | 
| receivables                                |      |           |           | 
+--------------------------------------------+------+-----------+-----------+ 
| Increase/(decrease) in trade and other     |      |       841 |     (435) | 
| payables                                   |      |           |           | 
+--------------------------------------------+------+-----------+-----------+ 
|                                            |      |           |           | 
+--------------------------------------------+------+-----------+-----------+ 
| Cash generated from/(used in) operations   |      |     2,501 |   (2,513) | 
+--------------------------------------------+------+-----------+-----------+ 
|                                            |      |           |           | 
+--------------------------------------------+------+-----------+-----------+ 
| Interest paid                              |      |      (24) |      (21) | 
+--------------------------------------------+------+-----------+-----------+ 
| Income taxes received/(paid)               |      |        91 |     (205) | 
+--------------------------------------------+------+-----------+-----------+ 
|                                            |      |           |           | 
+--------------------------------------------+------+-----------+-----------+ 
| Net cash from/(used in) operating          |      |     2,568 |   (2,739) | 
| activities                                 |      |           |           | 
+--------------------------------------------+------+-----------+-----------+ 
|                                            |      |           |           | 
+--------------------------------------------+------+-----------+-----------+ 
| Cash flows from investing activities       |      |           |           | 
+--------------------------------------------+------+-----------+-----------+ 
| Acquisition of subsidiary undertakings     |      |   (1,075) |     (229) | 
+--------------------------------------------+------+-----------+-----------+ 
| Net cash balances acquired with subsidiary |      |        85 |        66 | 
| undertakings                               |      |           |           | 
+--------------------------------------------+------+-----------+-----------+ 
| Purchase of property, plant and equipment  |      |     (361) |     (327) | 
+--------------------------------------------+------+-----------+-----------+ 
| Purchase of intangible assets              |      |   (7,318) |         - | 
+--------------------------------------------+------+-----------+-----------+ 
| Purchase of goodwill                       |      |         - |     (191) | 
+--------------------------------------------+------+-----------+-----------+ 
| Interest received                          |      |        34 |       133 | 
+--------------------------------------------+------+-----------+-----------+ 
|                                            |      |           |           | 
+--------------------------------------------+------+-----------+-----------+ 
| Net cash used in investing activities      |      |   (8,635) |     (548) | 
+--------------------------------------------+------+-----------+-----------+ 
|                                            |      |           |           | 
+--------------------------------------------+------+-----------+-----------+ 
| Cash flows from financing activities       |      |           |           | 
+--------------------------------------------+------+-----------+-----------+ 
| Proceeds from issuance of ordinary shares  |      |     6,950 |       175 | 
+--------------------------------------------+------+-----------+-----------+ 
|                                            |      |           |           | 
+--------------------------------------------+------+-----------+-----------+ 
| Net cash from financing activities         |      |     6,950 |       175 | 
+--------------------------------------------+------+-----------+-----------+ 
|                                            |      |           |           | 
+--------------------------------------------+------+-----------+-----------+ 
| Cash flows from discontinued operations    |      |           |           | 
+--------------------------------------------+------+-----------+-----------+ 
| Net cash from operating activities         |      |         - |      (12) | 
+--------------------------------------------+------+-----------+-----------+ 
|                                            |      |           |           | 
+--------------------------------------------+------+-----------+-----------+ 
| Net cash flows from discontinued           |      |         - |      (12) | 
| operations                                 |      |           |           | 
+--------------------------------------------+------+-----------+-----------+ 
|                                            |      |           |           | 
+--------------------------------------------+------+-----------+-----------+ 
| Net increase/(decrease) in cash and cash   |      |       883 |   (3,124) | 
| equivalents                                |      |           |           | 
+--------------------------------------------+------+-----------+-----------+ 
|                                            |      |           |           | 
+--------------------------------------------+------+-----------+-----------+ 
| Cash and cash equivalents at beginning of  |      |     1,093 |     4,217 | 
| period                                     |      |           |           | 
+--------------------------------------------+------+-----------+-----------+ 
|                                            |      |           |           | 
+--------------------------------------------+------+-----------+-----------+ 
| Cash and cash equivalents at end of period |      |     1,976 |     1,093 | 
+--------------------------------------------+------+-----------+-----------+ 
|                                            |      |           |           | 
+--------------------------------------------+------+-----------+-----------+ 
 
 
 
 
1. Accounting policies 
 
 
Reporting entity 
 
 
NetPlay TV plc is a public limited company which is listed on AIM and is 
incorporated and domiciled in the UK. 
 
 
The consolidated financial statements of the Company for the year ended 31 
December 2008 comprise the Company and its subsidiaries (together referred to as 
the 'Group' and individually as 'Group entities'). 
 
 
Basis of preparation 
 
 
The financial information which comprises the consolidated income statement, 
consolidated statement of changes in equity, consolidated balance sheet, 
consolidated cash flow statement and related notes do not constitute full 
accounts within the meaning of s240 of the Companies Act 1985. The auditors have 
reported on the Group's statutory accounts for each of the years 2008 and 2007 
under s235 of the Companies Act 1985, which do not contain statements under 
s237(2) or s237(3) of the Companies Act 1985 and are unqualified. The statutory 
accounts for 2007 have been delivered to the Registrar of Companies and the 
statutory accounts for 2008 will be filed with the Registrar in due course. 
 
 
The consolidated financial statements have been prepared in accordance with 
International Financial Reporting Standards (IFRS) issued by the International 
Accounting Standards Board (IASB), as adopted for use in the European Union. 
 
 
The financial statements have been prepared on a historical cost basis except 
where IFRS requires an alternative treatment. The principal variations from the 
historical cost basis relate to certain financial instruments (IAS 32 and 39), 
which are measured at fair value. 
 
This statement was approved by the directors on 21 June 2009. 
 
 
 
 
2. EBITDA analysis 
 
 
+---------------------------------------------------+------------+-----------+ 
|                                                   | Continuing |     Total | 
|                                                   | operations |           | 
+---------------------------------------------------+------------+-----------+ 
|                                                   |       2008 |      2008 | 
+---------------------------------------------------+------------+-----------+ 
|                                                   |  GBP 000's | GBP 000's | 
+---------------------------------------------------+------------+-----------+ 
|                                                   |            |           | 
+---------------------------------------------------+------------+-----------+ 
| Operating profit for the period (excluding        |        926 |       926 | 
| exceptional items)                                |            |           | 
+---------------------------------------------------+------------+-----------+ 
|                                                   |            |           | 
+---------------------------------------------------+------------+-----------+ 
| Add back: depreciation of tangible assets         |        335 |       335 | 
+---------------------------------------------------+------------+-----------+ 
| Add back: amortisation of intangible assets       |        944 |       944 | 
+---------------------------------------------------+------------+-----------+ 
| Add back: share based payments charge             |        229 |       229 | 
+---------------------------------------------------+------------+-----------+ 
|                                                   |            |           | 
+---------------------------------------------------+------------+-----------+ 
|                                                   |      2,434 |     2,434 | 
+---------------------------------------------------+------------+-----------+ 
 
 
+--------------------------------------+------------+--------------+----------+ 
|                                      | Continuing | Discontinued |    Total | 
|                                      | operations |   operations |          | 
+--------------------------------------+------------+--------------+----------+ 
|                                      |       2007 |         2007 |     2007 | 
+--------------------------------------+------------+--------------+----------+ 
|                                      |  GBP 000's |    GBP 000's |      GBP | 
|                                      |            |              |    000's | 
+--------------------------------------+------------+--------------+----------+ 
|                                      |   Restated |              | Restated | 
+--------------------------------------+------------+--------------+----------+ 
|                                      |            |              |          | 
+--------------------------------------+------------+--------------+----------+ 
| Operating loss for the period        |    (1,846) |        (167) |  (2,013) | 
| (excluding exceptional items)        |            |              |          | 
+--------------------------------------+------------+--------------+----------+ 
|                                      |            |              |          | 
+--------------------------------------+------------+--------------+----------+ 
| Add back: depreciation of tangible   |        105 |            6 |      111 | 
| assets                               |            |              |          | 
+--------------------------------------+------------+--------------+----------+ 
| Add back: amortisation of intangible |         45 |            - |       45 | 
| assets                               |            |              |          | 
+--------------------------------------+------------+--------------+----------+ 
| Add back: share based payments       |        119 |            - |      119 | 
| charge                               |            |              |          | 
+--------------------------------------+------------+--------------+----------+ 
|                                      |            |              |          | 
+--------------------------------------+------------+--------------+----------+ 
|                                      |    (1,577) |        (161) |  (1,738) | 
+--------------------------------------+------------+--------------+----------+ 
|                                      |            |              |          | 
+--------------------------------------+------------+--------------+----------+ 
 
 
 
 
3. Prior year adjustment 
 
 
During the year, the Group undertook a full review of player balances and found 
that liabilities to our players had been understated. 
 
 
The effect of the prior year adjustment is to increase trade and other payables 
at 31 December 2007 by GBP341,000, reduce revenue by GBP341,000 and increase the 
loss for the year ended 31 December 2007 by GBP341,000. 
 
 
4. Segmental information 
 
 
Business segments 
 
 
During the year, the Group operated two principal classes of business; 
interactive games & competitions, and mobile telephony services. 
 
 
The segmental analysis for the Group in 2008 is as follows: 
 
 
+----------------------+--------------+-----------+----------+----------+ 
| Segmental analysis   |  Interactive |    Mobile |  Central |    Total | 
|                      |    games and | telephony |    costs |          | 
|                      | competitions |           |          |          | 
+----------------------+--------------+-----------+----------+----------+ 
|                      |         2008 |      2008 |     2008 |     2008 | 
+----------------------+--------------+-----------+----------+----------+ 
|                      |    GBP 000's |       GBP |      GBP |      GBP | 
|                      |              |     000's |    000's |    000's | 
+----------------------+--------------+-----------+----------+----------+ 
|                      |              |           |          |          | 
+----------------------+--------------+-----------+----------+----------+ 
| Revenue from         |              |           |          |          | 
| external customers   |              |           |          |          | 
+----------------------+--------------+-----------+----------+----------+ 
| Continuing           |       18,625 |     1,134 |        - |   19,759 | 
| operations           |              |           |          |          | 
+----------------------+--------------+-----------+----------+----------+ 
|                      |              |           |          |          | 
+----------------------+--------------+-----------+----------+----------+ 
|                      |       18,625 |     1,134 |        - |   19,759 | 
+----------------------+--------------+-----------+----------+----------+ 
|                      |              |           |          |          | 
+----------------------+--------------+-----------+----------+----------+ 
| Operating            |              |           |          |          | 
| profit/(loss)        |              |           |          |          | 
+----------------------+--------------+-----------+----------+----------+ 
| Continuing           |        2,080 |       631 |  (1,785) |      926 | 
| operations           |              |           |          |          | 
+----------------------+--------------+-----------+----------+----------+ 
|                      |              |           |          |          | 
+----------------------+--------------+-----------+----------+----------+ 
|                      |        2,080 |       631 |  (1,785) |      926 | 
+----------------------+--------------+-----------+----------+----------+ 
 
 
 
 
The segmental analysis for the Group in 2007 is as follows: 
 
 
+----------------------+--------------+-----------+----------+----------+ 
| Segmental analysis   |  Interactive |    Mobile |  Central |    Total | 
|                      |    games and | telephony |    costs |          | 
|                      | competitions |           |          |          | 
+----------------------+--------------+-----------+----------+----------+ 
|                      |         2007 |      2007 |     2007 |     2007 | 
+----------------------+--------------+-----------+----------+----------+ 
|                      |    GBP 000's |       GBP |      GBP |      GBP | 
|                      |              |     000's |    000's |    000's | 
+----------------------+--------------+-----------+----------+----------+ 
|                      |     Restated |           |          | Restated | 
+----------------------+--------------+-----------+----------+----------+ 
| Revenue              |              |           |          |          | 
+----------------------+--------------+-----------+----------+----------+ 
| Continuing           |       6,266  |    2,141  |        - |   8,407  | 
| operations           |              |           |          |          | 
+----------------------+--------------+-----------+----------+----------+ 
| Discontinued         |            - |      663  |        - |     663  | 
| operations           |              |           |          |          | 
+----------------------+--------------+-----------+----------+----------+ 
|                      |              |           |          |          | 
+----------------------+--------------+-----------+----------+----------+ 
|                      |       6,266  |    2,804  |        - |   9,070  | 
+----------------------+--------------+-----------+----------+----------+ 
|                      |              |           |          |          | 
+----------------------+--------------+-----------+----------+----------+ 
| Operating            |              |           |          |          | 
| profit/(loss)        |              |           |          |          | 
+----------------------+--------------+-----------+----------+----------+ 
| Continuing           |      (1,097) |       555 |  (1,304) |  (1,846) | 
| operations           |              |           |          |          | 
+----------------------+--------------+-----------+----------+----------+ 
| Discontinued         |            - |     (167) |        - |    (167) | 
| operations           |              |           |          |          | 
+----------------------+--------------+-----------+----------+----------+ 
|                      |              |           |          |          | 
+----------------------+--------------+-----------+----------+----------+ 
|                      |      (1,097) |      388  |  (1,304) |  (2,013) | 
+----------------------+--------------+-----------+----------+----------+ 
|                      |              |           |          |          | 
+----------------------+--------------+-----------+----------+----------+ 
 
 
 
 
Geographical segments 
The following table represents revenue and certain asset information regarding 
the Group's geographical segments for the years ended 31 December 2008 and 2007. 
 
 
+----------------------+-------------+----------+----------+----------+----------+----------+ 
| Segmental analysis   |          UK |    Spain |    Italy |  British |  Rest of |    Total | 
|                      |             |          |          |   Virgin |      the |          | 
|                      |             |          |          |  Islands |    world |          | 
+----------------------+-------------+----------+----------+----------+----------+----------+ 
|                      |        2008 |     2008 |     2008 |     2008 |     2008 |     2008 | 
+----------------------+-------------+----------+----------+----------+----------+----------+ 
|                      |   GBP 000's |      GBP |      GBP |      GBP |      GBP |      GBP | 
|                      |             |    000's |    000's |    000's |    000's |    000's | 
+----------------------+-------------+----------+----------+----------+----------+----------+ 
| Revenue              |             |          |          |          |          |          | 
+----------------------+-------------+----------+----------+----------+----------+----------+ 
| Continuing           |      18,625 |      605 |      387 |        - |      142 |   19,759 | 
| operations           |             |          |          |          |          |          | 
+----------------------+-------------+----------+----------+----------+----------+----------+ 
|                      |             |          |          |          |          |          | 
+----------------------+-------------+----------+----------+----------+----------+----------+ 
|                      |      18,625 |      605 |      387 |        - |      142 |   19,759 | 
+----------------------+-------------+----------+----------+----------+----------+----------+ 
|                      |             |          |          |          |          |          | 
+----------------------+-------------+----------+----------+----------+----------+----------+ 
| Operating            |             |          |          |          |          |          | 
| profit/(loss)        |             |          |          |          |          |          | 
+----------------------+-------------+----------+----------+----------+----------+----------+ 
| Continuing           |         758 |      173 |      189 |    (131) |     (63) |      926 | 
| operations           |             |          |          |          |          |          | 
+----------------------+-------------+----------+----------+----------+----------+----------+ 
|                      |             |          |          |          |          |          | 
+----------------------+-------------+----------+----------+----------+----------+----------+ 
|                      |         758 |      173 |      189 |    (131) |     (63) |      926 | 
+----------------------+-------------+----------+----------+----------+----------+----------+ 
 
 
 
 
 
 
In 2007, more than 75% of the Group's revenue and operating profit related to UK 
trading, and as such a segmental analysis has not been included. 
5. Earnings per share 
+-----------------------------------------------+--------------+--------------+ 
|                                               |         Year |         Year | 
+-----------------------------------------------+--------------+--------------+ 
|                                               |        ended |        ended | 
|                                               |  31 December |  31 December | 
|                                               |         2008 |         2007 | 
+-----------------------------------------------+--------------+--------------+ 
|                                               |    GBP 000's |    GBP 000's | 
+-----------------------------------------------+--------------+--------------+ 
|                                               |              |     Restated | 
+-----------------------------------------------+--------------+--------------+ 
|                                               |              |              | 
+-----------------------------------------------+--------------+--------------+ 
| Loss attributable to shareholders             |              |              | 
+-----------------------------------------------+--------------+--------------+ 
| Continuing operations                         |      (1,210) |      (4,398) | 
+-----------------------------------------------+--------------+--------------+ 
| Discontinued operations                       |            - |        (935) | 
+-----------------------------------------------+--------------+--------------+ 
|                                               |              |              | 
+-----------------------------------------------+--------------+--------------+ 
|                                               |      (1,210) |      (5,333) | 
+-----------------------------------------------+--------------+--------------+ 
|                                               |              |              | 
+-----------------------------------------------+--------------+--------------+ 
|                                               |    Number of |    Number of | 
|                                               |       shares |       shares | 
+-----------------------------------------------+--------------+--------------+ 
|                                               |              |              | 
+-----------------------------------------------+--------------+--------------+ 
| Weighted average numbers of shares in issue   |  107,325,135 |   68,869,873 | 
+-----------------------------------------------+--------------+--------------+ 
| Dilution effects of share options             |    7,026,433 |      391,905 | 
+-----------------------------------------------+--------------+--------------+ 
| Dilution effect of employee share schemes     |       99,933 |      131,025 | 
+-----------------------------------------------+--------------+--------------+ 
|                                               |              |              | 
+-----------------------------------------------+--------------+--------------+ 
| Diluted weighted average number of shares in  |  114,451,501 |   69,392,803 | 
| issue                                         |              |              | 
+-----------------------------------------------+--------------+--------------+ 
|                                               |              |              | 
+-----------------------------------------------+--------------+--------------+ 
|                                               |    Pence per |    Pence per | 
|                                               |        share |        share | 
+-----------------------------------------------+--------------+--------------+ 
| Basic earnings per share                      |              |              | 
+-----------------------------------------------+--------------+--------------+ 
| Continuing operations                         |       (1.13) |       (6.39) | 
+-----------------------------------------------+--------------+--------------+ 
| Discontinued operations                       |            - |       (1.36) | 
+-----------------------------------------------+--------------+--------------+ 
|                                               |              |              | 
+-----------------------------------------------+--------------+--------------+ 
|                                               |       (1.13) |       (7.75) | 
+-----------------------------------------------+--------------+--------------+ 
|                                               |              |              | 
+-----------------------------------------------+--------------+--------------+ 
|                                               |    Pence per |    Pence per | 
|                                               |        share |        share | 
+-----------------------------------------------+--------------+--------------+ 
| Diluted earnings per share                    |              |              | 
+-----------------------------------------------+--------------+--------------+ 
| Continuing operations                         |       (1.06) |       (6.34) | 
+-----------------------------------------------+--------------+--------------+ 
| Discontinued operations                       |            - |       (1.35) | 
+-----------------------------------------------+--------------+--------------+ 
|                                               |              |              | 
+-----------------------------------------------+--------------+--------------+ 
|                                               |       (1.06) |       (7.69) | 
+-----------------------------------------------+--------------+--------------+ 
 
 
 
 
Basic earnings per share is calculated on the results attributable to ordinary 
shares divided by the weighted average number of shares in issue during the year 
excluding those held by the AESOP scheme, which are treated as cancelled. 
 
 
Diluted earnings per share calculations include additional shares to reflect the 
dilutive effect of employee share schemes and share option schemes. 
 
 
On 12 May 2009, the Company issued 4,444,444 ordinary shares by way of a placing 
to raise further funds for the Company. 
 
 
On 15 May 2009, the Company issued 8,533,333 ordinary shares to satisfy purchase 
consideration of the gaming assets and player database of Two Way Gaming 
Limited. 
6. Share capital 
 
 
+--------------------------------------------------+------------+----------+ 
|                                                  |       2008 |     2007 | 
+--------------------------------------------------+------------+----------+ 
|                                                  |  GBP 000's |      GBP | 
|                                                  |            |    000's | 
+--------------------------------------------------+------------+----------+ 
| Authorised                                       |            |          | 
+--------------------------------------------------+------------+----------+ 
| 200,000,000 ordinary shares of 5p each           |     10,000 |   10,000 | 
+--------------------------------------------------+------------+----------+ 
|                                                  |            |          | 
+--------------------------------------------------+------------+----------+ 
| Allotted, called up and fully paid               |            |          | 
+--------------------------------------------------+------------+----------+ 
| 123,242,859 (2007: 76,039,958) ordinary shares   |      6,162 |    3,802 | 
| of 5p                                            |            |          | 
+--------------------------------------------------+------------+----------+ 
 
 
 
 
On 10 March 2008 the Company issued 428,135 ordinary shares of 5p each at a 
price of 16.35p per share as consideration for the acquisition of the database 
of subscribers of Rubberduck Limited. 
 
 
On 14 April 2008 the Company issued 40,000,000 ordinary shares of 5p each at a 
price of 15.00p per share by way of a placing. The funds raised were used 
towards satisfying the consideration of the Bingos.com acquisition. 
 
 
On 6 May 2008 the Company issued 2,375,000 ordinary shares of 5p each at a price 
of 20.00p per share as consideration for the acquisition of the Sky TV channel 
867. 
 
 
On 30 June 2008 the Company issued 1,515,151 ordinary shares of 5p each at a 
price of 16.5p for cash consideration to Story Holdings. 
 
 
On 31 December 2008 the Company issued 2,884,615 ordinary shares of 5p each at a 
price of 26.00p per share as consideration for the acquisition of Toucanwin and 
Ventury Games. 
 
 
 
 
 
 
 
 
7. Reserves - Company 
 
 
+--------------------------------------+------------+------------+------------+ 
|                                      |      Share |      Other |   Retained | 
|                                      |    premium |    reserve |   earnings | 
|                                      |    account |            |            | 
+--------------------------------------+------------+------------+------------+ 
|                                      |  GBP 000's |  GBP 000's |  GBP 000's | 
+--------------------------------------+------------+------------+------------+ 
|                                      |            |            |            | 
+--------------------------------------+------------+------------+------------+ 
| Balance at the beginning of the year |      3,593 |        268 |      (387) | 
+--------------------------------------+------------+------------+------------+ 
|                                      |            |            |            | 
+--------------------------------------+------------+------------+------------+ 
| Issue of share capital               |      5,170 |          - |          - | 
+--------------------------------------+------------+------------+------------+ 
| Loss for the period                  |          - |          - |    (2,483) | 
+--------------------------------------+------------+------------+------------+ 
| Transfer between reserves            |          - |      (126) |        126 | 
+--------------------------------------+------------+------------+------------+ 
| Share based payment charge           |          - |        229 |          - | 
+--------------------------------------+------------+------------+------------+ 
|                                      |            |            |            | 
+--------------------------------------+------------+------------+------------+ 
| Balance at the end of the year       |      8,763 |        371 |    (2,744) | 
+--------------------------------------+------------+------------+------------+ 
 
 
The transfer between reserves is in relation to share based payment charges for 
options lapsed during the period. 
 
 
8. Income tax expense 
 
 
+-----------------------------------------------------------------------+------------+----------+ 
|                                                                       |       2008 |     2007 | 
+-----------------------------------------------------------------------+------------+----------+ 
|                                                                       |   GBP000's | GBP000's | 
+-----------------------------------------------------------------------+------------+----------+ 
|                                                                       |            |          | 
+-----------------------------------------------------------------------+------------+----------+ 
| Current tax                                                           |            |          | 
+-----------------------------------------------------------------------+------------+----------+ 
|  - UK corporation tax on loss for the year                            |          2 |      (9) | 
+-----------------------------------------------------------------------+------------+----------+ 
|  - current tax charge on foreign subsidiaries                         |        183 |        - | 
+-----------------------------------------------------------------------+------------+----------+ 
|  - adjustment in respect of prior years                               |          8 |     (43) | 
+-----------------------------------------------------------------------+------------+----------+ 
|                                                                       |            |          | 
+-----------------------------------------------------------------------+------------+----------+ 
| Total current tax charge                                              |        193 |     (52) | 
+-----------------------------------------------------------------------+------------+----------+ 
|                                                                       |            |          | 
+-----------------------------------------------------------------------+------------+----------+ 
| Deferred tax                                                          |         24 |       51 | 
+-----------------------------------------------------------------------+------------+----------+ 
|                                                                       |            |          | 
+-----------------------------------------------------------------------+------------+----------+ 
| Total tax charge for the group                                        |        217 |      (1) | 
+-----------------------------------------------------------------------+------------+----------+ 
| Total tax charge relating to continuing operations                    |        217 |       49 | 
+-----------------------------------------------------------------------+------------+----------+ 
| Total tax charge relating to discontinued operations                  |          - |     (50) | 
+-----------------------------------------------------------------------+------------+----------+ 
|                                                                       |            |          | 
+-----------------------------------------------------------------------+------------+----------+ 
| Total tax charge for the group                                        |        217 |      (1) | 
+-----------------------------------------------------------------------+------------+----------+ 
 
 
 
 
+-----------------------------------------------------+---------+-----------+ 
|                                                     |         |           | 
+-----------------------------------------------------+---------+-----------+ 
| Effective tax charge                                |         |           | 
+-----------------------------------------------------+---------+-----------+ 
|                                                     |         |           | 
+-----------------------------------------------------+---------+-----------+ 
|                                                     |    2008 |      2007 | 
+-----------------------------------------------------+---------+-----------+ 
|                                                     |     GBP | GBP 000's | 
|                                                     |   000's |           | 
+-----------------------------------------------------+---------+-----------+ 
|                                                     |         |  Restated | 
+-----------------------------------------------------+---------+-----------+ 
|                                                     |         |           | 
+-----------------------------------------------------+---------+-----------+ 
| Loss on ordinary activities before taxation         |     993 |     5,334 | 
+-----------------------------------------------------+---------+-----------+ 
|                                                     |         |           | 
+-----------------------------------------------------+---------+-----------+ 
| Current tax charge                                  |     193 |      (52) | 
+-----------------------------------------------------+---------+-----------+ 
|                                                     |         |           | 
+-----------------------------------------------------+---------+-----------+ 
| Effective tax charge (%)                            |   19.4% |    (1.0%) | 
+-----------------------------------------------------+---------+-----------+ 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 FR SEFFAFSUSEEM 
 
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