Netplay Makes GBP 3.2m Loss
30th September, 2009
Despite restructuring to exploit new TV regulations on terrestrial channels Netplay has made a £3.2m loss in its half year report according to eGaming Review
The cost of this restructuring which was brought to the table after the relaxation of guidelines by media watchdog Ofcom has seen the company make a loss for the period ending 30th June 2009 after it broke even the previous year.
Figures reveal that revenue fell by 8% from £10.1m to £9.3m for the period.
Performance has been particularly affected by the sale of Abstract Games in early 2009 and the heavy investment in staff and technology so that they can partner with Tier1 media channels.
Martin Higginson, chief executive of Net Play said that these one off costs were necessary to fully realize the opportunities presented by the new guidelines which allow public service channels to air gambling programmes between midnight and 6am.
Martin Higginson said: “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.”
Netplay’s deals with Five, FreeSat, STV, Turner media and Virgin media means that the company "now dominates the UK terrestrial and digital TV interactive gaming market, and is able to generate stronger and better quality revenues” continued Higginson.
Figures show that gross bets were up 31% to £204m in comparison to £154m the previous year. Netplay anticipates growing even further with additional channels which have seen the number of daily depositing players increasing five fold since the terrestrial TV launch in med September this year.
Netplay has also launched it interactive mobile to TV product which saw mobile gaming margins rise 450% to £0.9m from £0.2m the previous year.
By Faye
