9 January 2014
There was a trading update today from NetPlay TV, which I thought was worth a look, as I have covered these here a few times now.
The shares nudged up to 21.25p after delivering what seems a solid update to holders, reporting that things appear to be very much on track.
- The Interactive gaming company reported a strong Q4 performance with a 37% increase in revenues to £7.9m against the £5.9m achieved for the period in 2012.
- Additionally, there was a 12% increase in new depositing players, while perhaps more interesting for holders, was news that the area concerning mobile and tablet had performed very well.
- Net revenue in this field has increased 121% year on year, but still only accounts for 30% of total net revenue, perhaps implying further growth to come.
The board remains confident that the company will meet full year expectations, the EBITDA at the top end.
Expectations here are for EPS of 1.5p for 2013 rising to 1.9p for 2014,
which puts the shares on a forward PER of 11.
NetPlay has made solid progress over the last couple of years, is cash generative and should be sitting on an increasing chunk of it over the next few years.
The only potential negative for me, is in terms of new gaming tax proposals which could see a levy imposed of as much as 15% on specific gaming companies or areas they operate in. This is largely focused on those with offshore internet operations, who generate revenue from the
NetPlay has been aware of the changes which have been scheduled to come into force by the end of December 2014 and will perhaps further enlighten
shareholders in the preliminary results for the year ended 2013 which are due in April of this year.
I don’t have an interest in set top box and related technology company PACE, other than they are largely in the same field as Amino.
That said, the company’s trading update today appears to have been well received and the shares added 10p to close at £3.52p well above the £2.00 of less than a year back.
The board stressed that the Group had performed well with the full year results to be ahead of previous guidance.
The balance sheet will also look a whole lot tidier, with an emphasis on free cash flow.
Broker Peel Hunt had pre-tax profits of £112m pencilled in for 2013 rising to £138m for 2014, putting the shares on a forward PER of 11.
The company, via both acquisitions, along with organic growth appears to have performed well and may be worth keeping an eye on.