NetPlay TV revenues fall 4% in 2015
Core B2C operations down 8% although underlying metrics good and year-to-date revenues up 16%
NetPlay TV’s acquisition of digital marketing firm Otherside helped drive a 17% increase in new depositing players during FY15, but revenues and adjusted EBITDA both fell during the period.
The firm, which operates TV-based gambling products and the Vernons egaming brand, posted net revenues of ?26.3m for the 12 months ended 31 December 2015, down 4% on the prior year.
The operator’s B2C arm generated the bulk of revenues (?25.2m) while its Otherside B2B division generated ?1.1m since being integrated into the business in August.
On a standalone basis, B2C revenues were down 8% YoY from ?27.4m.
EBITDA stood at ?2.7m, down from ?3.7m for FY14, but NetPlay said profits had grown by ?1.8m on a like-for-like basis had it not been for the impact of the UK Point of Consumption tax.
Despite B2C marketing spend being slashed by 32% to ?8.7m, total new depositing players increased 17% to 88,551 while average revenue per active depositing player increased 4% to ?327 for its casino-only brands.
The operator said its revised strategy focused around its TV partnership deals with ITV and Channel 5 in a bid to “maximise the effectiveness” of its airtime contacts.
This, it said, resulted in cost per acquisition falling 20% to ?166 for its casino-only brands.
NetPlay TV CEO Bjarke Larsen said his firm had delivered significant strategic and operational progress and had “successfully navigated” the impact of PoC.
“The measures we took at the end of the 2014 have borne fruit as is evident with our core KPIs remaining strong and with adjusted EBITDA increasing by ?1.8m on a like-for-like basis.
“NetPlay TV continues to have a very strong balance sheet and remains highly cash generative, giving the board continued confidence that the group is well positioned to pursue not just bolt on opportunities but also more transformational deals, taking advantage of the organic growth and M&A opportunities that lie ahead,” he added.
NetPlay TV was among those in the running to acquire Sportech’s Football Pools business, but later withdrew from the process.
The firm’s share price was up 15% to 9.98p after early morning trading.