NetPlay TV

TV gaming concern NetPlay TV continues to successfully change direction through a move into the interactive gaming business.

NetPlay’s losses widened from £993,000 to £11.1m in the year to December, despite turnover increased 10% to £21.6m as the AIM-quoted company focused on interactive gaming and enjoyed strong growth within its supercasino.com business.

Restructuring costs, as well as write-offs related to the sale of telephone gambling business Abstract games to its original owners for £1, were factors behind the loss. Also at play were write-offs totalling £3.1m, associated with OFCOMs change in regulation around TV gambling, which lead to NetPlay terminating ‘onerous’ agreements.

2009 was a transitional year for NetPlay, says CEO Martin Higginson, explaining that ‘we took the decision to invest in interactive gaming, in what is a huge business’, adding that ‘we felt we had to change direction to become a fully fledged player in the market.'

NetPlay, whose new technologies include an iPhone application allowing customers to gamble using the iPhone on a roulette wheel connected to its online TV channel, owns a number of online businesses including supercasino.com and bingos.com, TV channel Challenge Jackpot and mobile phone enterprise Lucky Numbers. Higginson is keen to expand the businesses internationally, saying, ‘we are confident we can roll out globally with a number of partners.' He also argues that 'since we specialise in low-value bets, which is not bad in the recession, I believe we can continue to grow.'

Debt-free and with its prospects bolstered by some £10m cash, NetPlay is forecast to produce maiden pre-tax profits of £3.12m and 1.51p of earnings in the year to December 2010 and its shares are well worth a speculation.