UK-based interactive TV gaming company NetPlay TV announced today its financial results for the year ended December 31, 2015. Net revenue for the period amounted to £26.4 million, down from the amount of £27.4 million reported for the year ended December 31, 2014.
Up until last year, NetPlay TV specialized in the provision of B2C gaming services. Last August, the company purchased Otherside Inc., a product development and technology as well as online marketing business, for the amount of £3.2 million. The acquisition resulted in NetPlay TV establishing its B2B division for the provision of products and services for the binary options trading, online gambling, and e-commerce segments.
Full-year revenue from the company’s B2C division amounted to £25.2 million. As for NetPlay TV’s newly formed B2B segment, it generated a total of £1.1 million in the months between August and December, 2015.
Adjusted EBITDA totaled £2.7 million, representing a decrease from the £3.6 million posted for the previous year. Adjusted profit before tax stood at £2.2 million compared to the amount of £3.2 million generated in 2014. Reported profit before tax amounted to £624,000. In comparison, the amount of £93,000 was generated during the twelve months ended December 31, 2014. Profit after tax totaled £645,000, up from a loss of £100,000 posted for the previous calendar year.
Marketing expenditure decreased from £12.9 million in 2014 to £9.4 million in 2015. The company pointed out that B2C marketing expenses dropped by £4.2 million to the amount of £8.7 million. The decrease was attributed to NetPlay TV’s revised marketing program which was introduced towards the end of 2014. Operating costs were reduced to £6 million in 2015 from the amount of £6.2 million reported for the previous year. The company noted that the said costs remained at 23% of its full-year net revenue.
Commenting on the company’s performance, Chief Executive Officer Bjarke Larsen said that NetPlay TV had yet another busy year in which it achieved strong financial results, in spite of all the regulatory changes introduced. Mr. Larsen also noted that even though their performance was impacted by the said changes, that impact was mitigated by their strategy launched in late-2014.
The executive revealed that in 2016, the gaming operator will introduce several new products, with a number of new games and a fully responsive roulette betting interface being only few of those. The company is also eying several M&A opportunities and those are to be evaluated carefully in the months to come.
