Interactive gaming outfit NetPlay TV is ‘bullish’ about its future and is ‘comfortable’ about returning to predicted profits at the full year.

Over the past few years the company has transformed itself from a profitable but ‘challenged’ mobile and fixed-line gaming concern into a provider of a ‘converged gaming solution’ across TV, internet and phones. It began its AIM life in 2001 as Stream Group and in late 2006 executive chairman Martin Higginson arrived and promptly sold off its telephony business to management and more recently disposed of its loss-making mobile data carrier MChex.

Strategic plans include taking advantage of its TV presence and internet TV opportunities in northern Europe. Much has been invested on acquisitions and developing the customer base, including the April 2008 acquisition of million-customer online bingo operator Bingos.com for £6.25m in cash, and the proposed May purchase of Sky TV channel 848 for £475,000.

Sky Broadcasting has recently decided not to allow any new channels to be launched, making it difficult for the company to expand its TV operations from the single channel it owns (Live Roulette on Sky channel 847) and the other channel it broadcasts on. However, Higginson is confident of gaining approval and says rehearsals and testing for the ‘Live Blackjack’ programming is already going ahead.

Netplay lost £1.6m in the six months to June from £2.6m revenues, down from a £521,000 profit and £6.1m sales last time. Full-year results, due soon, are forecast by house broker Landsbanki to show £2.4m pre-tax profits and 2.2p earnings.

The shares, up from the 15p at which Higginson recently bought 13m shares but below a 12-month high of 46.5p, could repay a speculative bet.

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Netplay TV	AIM	£34.6m	28.75p	0.00p
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Overhaul at NetPlay			25/04/2007
Stream steams in with record profits			04/10/2004
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