Source - RNS
RNS Number : 6243J
Netplay TV PLC
13 September 2016
 

 

Date:

13 September 2016

On behalf of:

NetPlay TV plc ('the Company') along with its subsidiaries (the 'Group' or 'NetPlay' or 'NetPlay TV')

Embargoed until:

0700hrs

 

Not for release, publication or distribution, in whole or in part, in, into or from any jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdiction

 

NetPlay TV plc

 

Interim Results for the six months ended 30 June 2016

 

NetPlay TV plc (AIM: NPT), the interactive gaming company, announces its interim results for the six months ending 30 June 2016:

 

Key Performance Indicators

§ 15% increase in net revenue to £14.7m (H1 2015: £12.7m)

§ 3% increase in new depositing players to 43,723 (H1 2015: 42,305)

§ 3% increase in active depositing players to 65,200 (H1 2015: 63,411)

 

Financial Highlights

§ Adjusted EBITDA[*] increased 31% to £1.7m (H1 2015: £1.3m)

§ Adjusted profit before tax[†] increased 30% to £1.4m (H1 2015: £1.1m)

§ Adjusted earnings per share increased 30% to 0.52 pence per share (H1 2015[‡]: 0.40 pence per share)

§ Reported profit before tax and total comprehensive income of £1.0m (H1 2015: £0.2m)

§ Cash and cash equivalents of £9.0m (H1 2015: £15.8m) after one-off payments in relation to the special dividend declared at the time of the FY2015 results (£2.2m).

§ Strong contribution from the B2B operating segment with £2.1m of revenue and £0.4m to adjusted EBITDA

 

Operational Highlights

§ Key broadcast relationship with ITV extended for a further three years

§ Significant roll out of new content and titles across mobile and desktop platforms which widens the product offering for our B2C customers

§ B2B operating segment performing ahead of expectations

 

Post Period Highlights

§ Launch of the UK's first Apple TV application which streams the full suite of the Group's live roulette products to television

 

Interim dividend

§ Interim dividend maintained at 0.22 pence per share (H1 2015: 0.22 pence per share)

 

 

 

Commenting on the results and the trading update, Bjarke Larsen, CEO of NetPlay TV said:

 

"These results show that the momentum delivered in the last year has continued into 2016 and we are very pleased to be reporting growth in overall Group revenue and profit.

 

"The Group's operational performance in the period has also been significant with not only the renewal of the ITV relationship, but also product enhancements, new site roll-outs and, post period, the launch of the AppleTV application.

 

"We set out our growth strategy at the beginning of the year and are focused on continuing to deliver against this. There has been significant M&A activity in the industry, and the Group, with its solid balance sheet, is well placed to pursue those opportunities that the board believes will be earnings enhancing."

 

Enquiries:

NetPlay TV plc

www.netplaytv.com

Bjarke Larsen, Chief Executive Officer  

Akshay Kumar, Group Finance Director

Via Redleaf Communications

 

 

 

Redleaf Communications

Tel: 020 7382 4730

Rebecca Sanders-Hewett

Sarah Fabietti-Dallison

Susie Hudson   

[email protected]

 

 

 

Shore Capital (Nominated Adviser and Broker)

Tel: 020 7408 4090

Stephane Auton

Edward Mansfield

 

 

Notes to Editors:

About NetPlay TV plc

NetPlay TV plc operates a number of online interactive gaming services under a UK remote operating license and Alderney gaming licence, these include SuperCasino.com, Jackpot247.com and Vernons.com. The Group is focused on the delivery of a converged interactive gaming experience allowing its players to interact with its games on a variety of platforms, TV, internet, mobile and tablet. Its TV services can be viewed every evening on ITV and Channel 5.

The Group also operates a B2B operating segment which is a specialist online digital marketing, product development and technology business. This provides a complementary and profitable revenue stream whilst adding to the Group's capability in driving traffic to NetPlay TV's brands.

The Company is admitted to trading on the AIM market of the London Stock Exchange (NPT).
 

Operational and Financial Review

 

The Group's momentum delivered in 2015 has continued into the first half of 2016 resulting in a 31% increase in adjusted EBITDA to £1.7m (H1 2015: £1.3m) and 30% increase in adjusted earnings per share. Significant operational progress has been made in the first half of the year across all aspects of the business in order to support the momentum achieved and ultimately continue to add shareholder value.

The Group's television broadcast USP remains at the core of NetPlay TV's strategy. The Group successfully secured an additional three-year partnership agreement with ITV, ensuring its long-term television arrangements remain in place on the UK's largest commercial terrestrial TV channel until April 2019. This is testament to the value the long term relationship brings to both parties and in particular the Jackpot247 brand.

As a result of securing agreements with both ITV and Channel 5 (in the prior year), NetPlay TV is able to ensure that the combination of engagement through TV and our mobile platforms drives customer acquisition and player value both now and into the future.

The Group has delivered improved returns for the bingo product, having delivered a fully mobile and web responsive site for our Vernons Bingo brand, supported by a TV advertising campaign. In addition to rolling out the new site the team delivered a significant number of new game titles across mbile (55) and desktop (65), including Playtech's eagerly anticipated "Age of the Gods" slot titles.

The Group's casino-only brands experienced slightly lower deposits per customer which led B2C average revenue per depositing player to decrease by 2% to £267 (H1 2015: £273). This was following a slightly weaker Q2 on its casino-only brands. The Group had already commenced a programme to improve its core KPIs, the benefits of which we expect to see in H2 and beyond. This programme includes the phased roll out of our Business Intelligence (BI) dataroom, NetPlay TV's "one-stop-shop" for all player data and analysis. This is a significant project which will continue to be developed over time and supports our data led approach to marketing following the roll-out of an automated predictive customer retention platform across the SuperCasino and Jackpot247 brands.

Additionally during the period the Group is proactively building on an already robust social responsibility programme by launching a number of new features to ensure that all of our customers have the necessary tools available to help them gamble responsibly.

The Group is pleased to report that performance of its B2B operating segment (its digital marketing business), which was acquired in August 2015, has performed ahead of management expectations. Its operational performance has been strong and the Board believes there are still significant opportunities for this business in the coming year and beyond.

Marketing expenditure & performance

 

In addition to the successful extension with our two commercial broadcast partners, our marketing strategy continues to be effective; B2C marketing costs increased by 4% to £4.7m (H1 2015: £4.5m) and total new depositing players have increased by 3% to 43,723 (H1 2015: 42,305) showing only a 2% increase in the Group's cost per acquisition (CPA) to £173 (H1 2015: £169), on its casino-only brands, despite increased competitive activity in the UK.

The Group has successfully shown that there is a firm handle on marketing costs and that the relationships with TV broadcast partners continue to deliver significant value for the Group.

 

Income statement presentation

 

 
Statutory H1 2016
£ 000s
Adj. 1
£ 000s
 
Adj. 2
£ 000s
Adj. 3
£ 000s
Adjusted H1 2016
£ 000s
Adjusted H1 2015
£ 000s
Adjusted 2015
£ 000s
Net revenue
14,675
14,675
12,748
26,253
Betting and gaming duties
(1,710)
(1,710)
(1,924)
(3,761)
Marketing expenses
(6,112)
(6,112)
(4,495)
(9,394)
Operating expenses
(2,828)
(2,828)
(3,026)
(6,016)
Administrative expenses
(3,009)
574
86
41
(2,308)
(1,997)
(4,396)
Adjusted EBITDA
 
 
 
 
1,717
1,306
2,686
Depreciation of property, plant and equipment
(166)
(166)
(151)
(301)
Amortisation of intangible assets acquired externally of generated internally
(123)
(123)
(72)
(191)
Finance Income
12
12
24
45
Adjusted profit before tax
 
 
 
 
1,440
1,107
2,239
 
 
 
 
 
 
 
 
Acquisition related and other expenses
(41)
(41)
-
(167)
Share based payments
(86)
-
(86)
(108)
(167)
Amortisation of intangible assets acquired through a business combination
(285)
(285)
(760)
(1,281)
Reported profit before tax
1,028
1,028
239
624
Income tax
19
19
(2)
21
Profit after tax
1,047
1,047
237
645

  

Adj 1: Reclassification of depreciation and amortisation

Adj 2: Reclassification of share based payment charge

Adj 3: Reclassification of acquisition related and other expenses
 

The table above reconciles the statutory format of the income statement to adjusted EBITDA and profit before tax which is used by management internally to evaluate the underlying performance of the business. In the opinion of the Board this format better reflects the operational performance of the Group. The discussion in the section below will focus on the adjusted information.

 

The B2B operating segment was created following the acquisition of the trade and assets of the digital marketing business in August 2015. The full results of the new B2B operating segment as well as the core B2C segment (along with prior period comparatives) are shown in note 2 to the financial information. The Directors are pleased with the performance of the B2B operating segment which contributed £2.1m to net revenue and £0.4m to adjusted EBITDA which is tracking ahead of their expectations.

 

 

Cash flow and cash generation

 

The table below separates player balances, working capital, share capital issued, net finance income, acquisition related and other expenses paid, dividends paid and cash payments in respect of business combinations to show how adjusted EBITDA reconciles to the net underlying cashflow:

 

 

 

 

H1 2016

H1 2015

2015

 

£'000

£'000

£'000

Adjusted EBITDA

1,717

1,306

2,686

Capital expenditure paid

(198)

(284)

(576)

Net underlying cashflow

1,519

1,022

2,110

Cash conversion: adjusted EBITDA to net underlying cashflow

88%

78%

79%

Movement in player balances

(655)

(242)

24

Working capital movements and other movements

(1,417)

1,902

1,213

Share capital issued

161

-

-

Net finance income

30

24

45

Acquisition related and other expenses paid

(97)

(119)

(302)

Dividend paid

(3,214)

(979)

(1,631)

Acquisition of digital marketing business

-

-

(2,645)

Deferred consideration for digitial marketing business

(320)

-

-

Opening cash balance

13,000

14,186

14,186

Closing cash balance

9,007

15,794

13,000

 

The Group continues to be cash generative, with net cash generated from online gaming operations being £1.5m (H1 2015: £1.0m) and an 88% conversion rate from adjusted EBITDA. The Group now has cash and cash equivalents of £9.0m (H1 2015: £15.8m), which net of player balances means there is corporate cash available of £7.5m (H1 2015: £13.9m). This is equivalent to 2.7 pence per ordinary share in issue at the 30 June 2016 (4.7 pence per ordinary share in issue at 30 June 2015).

 

In August 2015, the Group acquired the trade and assets of a digital marketing business, Otherside Inc, for £3.2m. £2.6m consideration was paid in FY 2015 with £0.3m deferred considertation paid in H1 2016 and a further £0.2m paid in H2 2016.

 

During the period the Company paid a total of £3.2m (2015: £1.0m) in respect of the final dividend and one-off special dividend (£2.2m) which were both declared at the time of its FY2015 final results and approved at the Company's AGM in May 2016. The working capital movement in the period is due to the timing of committed cash flow incurred in H1 2016 evidenced by total trade and other payables reducing to £6.3m (2015: £7.8m). The level of capex incurred has reduced to £0.2m (H1 2015: £0.3m), however within H2 2016, the Group plans to further upgrade some its studio broadcast equipment to enhance the television viewers' experience.

 

Earnings per share

 

The directors have chosen to report an adjusted profit before taxation and adjusted earnings per share as they believe these measures better reflect the underlying performance of the Group. These results are summarised in the table below:

 

H1 2016

H1 2015

2015

£'000

£'000

£'000

Adjusted profit attributable to shareholders

 

 

 

Profit before taxation

1,028

239

624

Amortisation of intangible assets acquired through a business combination

285

760

1,281

Share based payments

86

108

167

Acquisition related & other expenses

41

-

167

Adjusted profit before taxation

1,440

1,107

2,239

 

 

 

 

 

Pence per share

Pence per share

Pence per share

Adjusted earnings per share[§]

0.52

0.40

0.81

 

 

 

 

 

Pence per share

Pence per share

Pence per share

 

 

 

 

Adjusted diluted earnings per share§

0.51

0.40

0.80

 

Dividend

 

Due to the continued strong cash position and generating ability of the Group, the Board is maintaining the interim dividend payable at 0.22 pence per share (2015 interim dividend: 0.22 pence per share). The interim dividend will be paid on 27 October 2016 to shareholders on the register on Friday 7 October 2016.

 

 

Post period highlights

 

As part of the product investment program the Group committed in-house resource to develop its Apple TV application. This was launched in August and allows new and existing players to stream any of our Live Roulette wheels direct to their TV and place bets using their mobile, tablet or desktop device.

 

 

H2 Outlook

 

The NetPlay TV team remains focused on delivering against the growth strategy it set out at the start of the year, underpinned by the Group's television broadcast USP and low customer acquisition costs. The coming period has a clear roadmap of deliverables including the new roulette betting game interface, the investment into the new show's aesthetics, HD cameras for the Group's live gaming roulette wheels, additional game variants to complement the existing live offering and the addition of new product verticals.

The B2B business continues to deliver in the second half of the year and the Directors believe there is further opportunities for future growth. The digital marketing team is focused on a number of areas to support its growth strategy including: expanding the affiliates pool through the launch of the Group's own affiliate programme, improve campaign optimisation including customer retargeting and a number of other product and operational initiatives.  

As seen in the recent weeks, the market continues to consolidate and the Board remains open to potential M&A opportunities to build scale particularly given the regulatory environment in which the Group operates. NetPlay TV's ability to acquire and integrate has been illustrated by the success of the B2B digital marketing business acquired in the prior year, and with its continued cash generation and strong balance sheet, the Group is well positioned to bolster its organic growth with either bolt-on or transformational M&A opportunities.  

 

 

 

 

 

NetPlay TV plc

 

Consolidated statement of comprehensive income

 

for the six months ended 30 June 2016

 

 

6 months ended

30 June

2015

6 months ended

30 June

2015

Year ended

31 December

2015

 

 

£ 000's

£ 000's

£ 000's

 

Note

Unaudited

Unaudited

Audited

 

 

 

 

 

 

 

 

 

 

Net revenue

 

14,675

12,748

26,253

 

 

 

 

 

Betting and gaming duties

 

(1,710)

  (1,924)

(3,761)

Marketing expenses

 

(6,112)

(4,495)

(9,355)

Operating expenses

 

(2,828)

(3,026)

(6,016)

Administrative expenses

 

(3,009)

(3,088)

(6,542)

 

 

 

 

 

Adjusted EBITDA[**]

 

1,717

1,306

2,686

 

 

 

 

 

 

 

 

 

 

Depreciation of property, plant and equipment

4

(166)

(151)

(301)

Amortisation of intangible assets

6

(408)

(832)

(1,472)

Acquisition related and other expenses

 

(41)

-

(167)

Share based payments

 

(86)

(108)

(167)

 

 

 

 

 

Profit from operations

 

1,016

215

579

 

 

 

 

 

Finance income

 

12

24

45

Profit before taxation

 

1,028

239

624

 

 

 

 

 

Income tax credit/ (charge)

 

 

19

(2)

21

Profit after taxation

 

1,047

237

645

Other comprehensive income

 

 

 

 

Exchange gains arising on translation of foreign subsidiary

 

6

-

-

 

 

 

 

 

 

 

 

 

 

Basic earnings per share[††]

 

0.38

0.09

0.23

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share††

 

0.37

0.08

0.23

                                                                                                                                               

 

 

NetPlay TV plc

 

Consolidated statement of financial position

 

as at 30 June 2016

Company registration number: 03954744

 

As at

30 June 2016

As at

30 June 2015

As at

31 Dec

2015

 

 

£ 000's

£ 000's

£ 000's

 

Note

Unaudited

Unaudited

Audited

ASSETS

 

 

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

Property, plant and equipment

4

346

451

445

Goodwill

5

5,237

4,171

5,232

Other intangible assets

6

3,008

1,444

3,285

Deferred tax asset

 

88

36

62

Total non-current assets

 

8,679

6,102

9,024

 

 

 

 

 

Current assets

 

 

 

 

Trade and other receivables

 

1,935

1,307

1,644

Cash and cash equivalents

 

9,007

15,794

13,000

Total current assets

 

10,942

17,101

14,644

 

 

 

 

 

Total assets

 

19,621

23,203

23,668

 

 

 

 

 

EQUITY AND LIABILITIES

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

Share capital

7

2,986

2,966

2,966

Share premium

7

809

668

668

Merger reserve

 

1,088

1,088

1,088

Foreign exchange reserve

 

6

-

-

Retained earnings

 

8,461

10,701

10,547

Total equity

 

13,350

15,423

15,269

 

 

 

 

 

Current liabilities

 

 

 

 

Trade and other payables

 

6,271

7,780

8,399

Total current liabilities

 

6,271

7,780

8,399

 

 

 

 

 

Total equity and liabilities

 

19,621

23,203

23,668

 

 

 

 

 

 

NetPlay TV plc

 

Consolidated statement of cash flows

 

for the six months ended 30 June 2016

 

6 months ended

30 June 2016

 

6 months ended

30 June 2015

 

Year

ended

31 December

2015

 

£ 000's

 

£ 000's

 

£ 000's

 

Unaudited

 

Unaudited

 

Audited

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

Profit for the period

1,047

 

237

 

645

 

 

 

 

 

 

Adjustments for:

 

 

 

 

 

Depreciation

166

 

151

 

301

Amortisation

408

 

832

 

1,472

Share based payments charge

86

 

108

 

167

Foreign exchange gain

(5)

 

-

 

-

Finance income

(12)

 

(24)

 

(45)

Income tax charge/ (credit)

(19)

 

2

 

(21)

(Increase)/ decrease in trade and other receivables

(308)

 

289

 

19

(Decrease)/ increase in trade and other payables

(1,815)

 

1,315

 

1,146

Decrease in provisions

-

 

(63)

 

(63)

Net cash from operating activities

(452)

 

2,847

 

3,621

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

Business combinations

-

 

-

 

(2,645)

Purchase of property, plant and equipment

(67)

 

(76)

 

(220)

Purchase of intangible assets

(131)

 

(208)

 

(356)

Interest received

30

 

24

 

45

Net cash used in investing activities

(168)

 

(260)

 

(3,176)

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

Net proceeds from issuance of ordinary shares

161

 

-

 

-

Dividend paid

(3,214)

 

(979)

 

(1,631)

Deferred consideration on business combination

(320)

 

-

 

-

Net cash used in financing activities

(3,373)

 

(979)

 

(1,631)

 

 

 

 

 

 

Net increase in cash

(3,993)

 

1,608

 

(1,186)

 

 

 

 

 

 

Cash & cash equivalents at beginning of period

13,000

 

14,186

 

14,186

Cash & cash equivalents at end of period

9,007

 

15,794

 

13,000

 

 

 

 

 

 

 

 

 

NetPlay TV plc

 

Consolidated statement of changes in equity

 

for the six months ended 30 June 2016

 

 

Share capital

Share premium

Merger reserve

Foreign Exchange Reserve

Retained earnings

Total

 

£ 000's

£ 000's

£ 000's

£ 000's

£ 000's

£ 000's

 

 

 

 

 

 

 

 As at 1 January 2015

2,966

668

1,088

-

11,366

16,088

 

 

 

 

 

 

 

Profit and total comprehensive income

-

-

-

-

237

237

 

 

 

 

 

 

 

Share based payment charge

-

-

-  

-

77  

77  

 

 

 

 

 

 

 

Dividend paid

-

-

-  

-

(979)  

(979)

 

 

 

 

 

 

 

As at 30 June 2015

2,966

668

1,088

-

10,701

15,423

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit and total comprehensive income

-  

-  

-  

-

408

408

 

 

 

 

 

 

 

Share based payment charge

-

-

-  

-

90 

90

 

 

 

 

 

 

 

Dividend paid

-

-

-

-

(652)

(652)

 

 

 

 

 

 

 

 As at 31 December 2015

2,966

668

1,088

-

10,547

15,269

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit for the period

-

-

-

-

1,047

1,047

 

 

 

 

 

 

 

Exchange gains arising on translation of foreign subsidiary

-

-

-

6

-

6

 

 

 

 

 

 

 

Total comprehensive income

-

-

-

6

1,047

1,053

 

 

 

 

 

 

 

Shares issued for employee share options

20

141

-

-

-

161

 

 

 

 

 

 

 

Share based payment charge

-

-

-

-

81

81

 

 

 

 

 

 

 

Dividend paid

-

-

-

-

(3,214)

(3,214)

 

 

 

 

 

 

 

As at 30 June 2016

2,986

809

1,088

6

8,461

13,350

 

 

 

Notes to the interim results

 

1. Basis of preparation

 

The financial information for the year ended 31 December 2015 does not constitute the full statutory accounts for that year.  The Annual Report and Financial Statements for 2015 have been filed with the Registrar of Companies.  The Independent Auditors' Report on the Annual Report and Financial Statement for 2015 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

 

This interim report, which has neither been audited nor reviewed by independent auditors, was approved by the board of directors on 12 September 2016. The financial information in this interim report has been prepared in accordance with the recognition and measurement requirements of International Financial Reporting Standards as adopted for use in the EU (IFRSs).  The accounting policies applied by the Group in this financial information are the same as those applied by the Group in its financial statements for the year ended 31 December 2015 and which will form the basis of the 2016 financial statements.  A number of new and amended standards have become effective for periods beginning on 1 January 2016, however none of these are expected to materially affect the Group.

 

 

 

2. Segmental Information

 

The Group has two reportable segments, being the Business-to-Customer ("B2C") and Business-to-Business ("B2B").

 

B2C consists of all online products and ancillary income. This segment was known as the Online Gaming segment in prior period. The brands operated in this division are Supercasino.com, Jackpot247.com and Vernons.com. These brands operate online gaming and betting products which management deem to have similar economic characteristics and customers, and therefore are aggregated into one reportable segment.

 

B2B relates to the online marketing, product development and technology business which was acquired in August 2015.

 

The Board evaluates performance on the basis of segment contribution. This measurement basis excludes head office costs not derived from operations of any segment and are only disclosed in total.

 

 

 

 

Income statement presentation for the 6 months ended 30 June 2016

 

 

B2C

B2B

Total

 

Net revenue

12,526

2,149

14,675

Betting and gaming duties

(1,710)

-

(1,710)

Marketing expenses

(4,728)

(1,384)

(6,112)

Operating expenses

(2,790)

(38)

(2,828)

Administrative expenses

(1,326)

(368)

(1,694)

Segment contribution

1,972

359

2,331

Administrative expenses - Head Office Costs

 

 

(614)

Adjusted EBITDA

 

 

1,717

Depreciation of property, plant and equipment

 

 

(166)

Amortisation of intangible assets acquired externally or internally generated

 

 

(123)

Finance income

 

 

12

Adjusted Profit before tax

 

 

1,440

Acquisition related and other expenses

 

 

(41)

Amortisation of intangible assets acquired through business combination

 

 

(285)

Share based payments

 

 

(86)

Profit before tax

 

 

1,028

 

 

Income statement presentation for the 6 months ended 30 June 2015

 

 

B2C

B2B

Total

 

£ 000's

£ 000's

£ 000's

Net revenue

12,748

-

12,748

Betting and gaming duties

(1,924)

-

(1,924)

Marketing expenses

(4,495)

-

(4,495)

Operating expenses

(3,026)

-

(3,026)

Administrative expenses

(1,207)

-

(1,207)

Segment contribution

2,096

-

2,096

Administrative expenses - Head Office Costs

 

 

(790)

Adjusted EBITDA

 

 

1,306

Depreciation of property, plant and equipment

 

 

(151)

Amortisation of intangible assets acquired externally or internally generated

 

 

(72)

Finance income

 

 

24

Adjusted Profit before tax

 

 

1,107

Acquisition related and other expenses

 

 

-

Amortisation of intangible assets acquired through business combination

 

 

(760)

Share based payments

 

 

(108)

Profit before tax

 

 

239

 

 

 

 

 

Income statement presentation for the year ended 31 December 2015

 

 

B2C

B2B

Total

 

£ 000's

£ 000's

£ 000's

Net revenue

25,177

1,076

26,253

Betting and gaming duties

(3,761)

-

(3,761)

Marketing expenses

(8,770)

(624)

(9,394)

Operating expenses

(6,003)

(13)

(6,016)

Administrative expenses

(2,677)

(278)

(2,955)

Segment contribution

3,966

161

4,127

Administrative expenses - Head Office Costs

 

 

(1,441)

Adjusted EBITDA

 

 

2,686

Depreciation of property, plant and equipment

 

 

(301)

Amortisation of intangible assets acquired externally or internally generated

 

 

(191)

Finance income

 

 

45

Adjusted Profit before tax

 

 

2,239

Acquisition related and other expenses

 

 

(167)

Amortisation of intangible assets acquired through business combination

 

 

(1,281)

Share based payments

 

 

(167)

Profit before tax

 

 

624

 

 

 

B2C gross income of £15,893,000 (H1 2015: £17,407,000, FY 2015: £33,871,000) comprises of gross gaming income of £14,963,000 (H1 2015: £17,165,000, FY 2015: £33,102,000) and ancillary income of £930,000 (H1 2015: £242,000, FY 2015: £769,000). B2C net revenue of £12,526,000 (H1 2015: £12,748,000, FY 2015: £25,177,000) is the B2C gross income offset by customer incentives of £3,367,000 (H1 2015: £4,659,000, FY 2015: £8,694,000).

 

 

Geographical information

 

External revenue by location of customers

Non-current assets by location of assets

 

30 June 2016

 

£000's

30 June 2015

 

£000's

31 December 2015

£000's

30 June 2016

 

£000's

30 June 2015

 

£000's

31 December 2015

£000's

United Kingdom, including Channel Islands

12,511

12,631

24,775

5,634

5,901

5,717

British Virgin Islands

-

-

-

3,010

201

3,272

Rest of world:

 

 

 

 

 

 

- B2C

15

117

402

-

-

-

- B2B

2,149

-

1,076

35

-

35

 

14,675

12,748

26,253

8,679

6,102

9,024

 

 

 

 

3. Earnings per share

 

6 months ended

30 June 2016

6 months ended

30 June 2015

Year

ended 31 December

2015

 

£ 000's

£ 000's

£ 000's

Profit attributable to shareholders

 

 

 

Profit after taxation

1,047

237

645

 

 

 

 

 

Number of Shares

Number of Shares

Number of shares

Weighted average numbers of ordinary shares in issue (adjusted for share consolidation described in note 7)

277,661,905

276,743,254

276,743,254

Dilutive effect of shares under option

4,022,984

2,993,331

4,712,789

Weighted average numbers of dilutive ordinary shares

281,684,889

279,736,585

281,456,043

 

 

 

 

 

Pence per share

Pence per share

Pence per share

 

 

 

 

Earnings per share (EPS)[‡‡]

0.38

0.09

0.23

 

 

 

 

Diluted earnings per share‡‡

0.37

0.08

0.23

 

Adjusted earnings per share

 

An adjusted earnings per share, based on the profit before taxation from continuing operations and before the amortisation of intangible assets arising on acquisitions, share based payments and reorganisation costs, has been presented below in order to highlight the underlying trading performance of the Group.

 

6 months ended

30 June 2016

6 months ended

30 June 2015

Year

ended 31 December

2015

Adjusted profit attributable to shareholders

 

 

 

Profit before taxation

1,028

239

624

Amortisation of intangible assets acquired through a business combination

285

760

1,281

Share based payments

86

108

167

Acquisition related and other expenses

41

-

167

Adjusted profit before taxation

1,440

1,107

2,239

 

 

 

 

Pence per share

Pence per share

Pence per share

Adjusted earnings per share‡‡

0.52

0.40

0.81

 

 

 

 

 

Pence per share

Pence per share

Pence per share

 

 

 

 

Adjusted diluted earnings per share‡‡

0.51

0.40

0.80

 

 

4. Property, plant and equipment

 

 

Leasehold improvements

Computer equipment

Fixtures & fittings

Total

 

 

£ 000's

£ 000's

£ 000's

£ 000's

Cost

 

 

 

 

As at 1 January 2015

           465

3,391

237

4,093

 

 

 

 

 

Additions

 -

76

-

76

As at 30 June 2015

           465

3,467

237

4,169

 

 

 

 

 

Additions

 -

144

-

144

As at 31 December 2015

           465

3,611

237

4,313

 

 

 

 

 

Additions

 -

64

3

67

As at 30 June 2016

           465

3,675

240

4,380

 

 

 

 

 

Depreciation

 

 

 

 

As at 1 January 2015

465

2,907

195

3,567

 

 

 

 

 

Charge in the period

-

140

11

151

As at 30 June 2015

465

3,047

206

3,718

 

 

 

 

 

Charge in the period

-

139

11

150

As at 31 December 2015

465

3,186

217

3,868

 

 

 

 

 

Charge in the period

-

156

10

166

As at 30 June 2016

465

3,342

227

4,034

 

 

 

 

 

Net book value

 

 

 

 

As at 30 June 2016

-

333

13

346

 

 

 

 

 

As at 31 December 2015

-

425

20

445

 

 

 

 

 

As at 30 June 2015

-

420

31

451

 

 

 

5. Goodwill

 

£ 000's

Cost & net book value

 

 

 

As at 30 June 2015

4,171

Additions acquired through business combination

1,061

As at 31 December 2015

5,232

Exchange differences

5

As at 30 June 2016

5,237

 

 

 

 

 

6. Intangible assets

 

Customer data-bases

Brand

Domain names

Website & other
develop-ment

Partner relation-ships

Total

 

 

 

 

 

 

 

 

£ 000's

£ 000's

£ 000's

£ 000's

£ 000's

£ 000's

Cost

 

 

 

 

 

 

As at 1 January 2015

6,075

460

5,401

518

997

13,451

 

 

 

 

 

 

 

Additions

-

-

-

208

-

208

As at 30 June 2015

6,075

460

5,401

726

997

13,659

 

 

 

 

 

 

 

Additions

 

 

 

 

 

 

-intangible assets acquired through business combination

-

-

-

258

-

258

-intangible assets acquired externally or generated internally

645

198

-

1,379

-

2,222

As at 31 December 2015

6,720

658

5,401

2,363

997

16,139

 

 

 

 

 

 

 

Additions

-

-

-

131

-

131

As at 30 June 2016

6,720

658

5,401

2,494

997

16,270

 

 

 

 

 

 

 

Amortisation

 

 

 

 

 

 

As at 1 January 2015

5,096

58

4,991

241

997

11,383

 

 

 

 

 

 

 

Charge in the period

 

 

 

 

 

 

-intangible assets acquired through business combination

639

23

98

-

-

760

-intangible assets acquired externally or generated internally

5

-

4

63

-

72

As at 30 June 2015

5,740

81

5,093

304

997

12,215

 

 

 

 

 

 

 

Charge in the period

 

 

 

 

 

 

-intangible assets acquired through business combination

373

31

2

115

-

521

-intangible assets acquired externally or generated internally

6

-

3

109

-

118

As at 31 December 2015

6,119

112

5,098

528

997

12,854

 

 

 

 

 

 

 

Charge in the period

 

 

 

 

 

 

-intangible assets acquired through business combination

64

33

50

138

-

285

-intangible assets acquired externally or generated internally

3

-

3

117

-

123

As at 30 June 2016

6,186

145

5,151

783

997

13,262

 

 

 

 

 

 

 

Net book value

 

 

 

 

 

 

As at 30 June 2016

534

513

250

1,711

-

3,008

 

 

 

 

 

 

 

As at 31 December 2015

601

546

303

1,835

-

3,285

 

 

 

 

 

 

 

As at 30 June 2015

334

379

308

422

-

1,444

 

 

 

7. Share capital

 

Ordinary shares

Number

Ordinary shares

Share premium

Total

 

 

£ 000's

£ 000's

£ 000's

 

 

 

 

 

 

 

 

 

 

At 1 January 2015, 30 June 2015 and 31 December 2015: ordinary shares of 1 pence each

296,610,562

2,966

668

3,634

 

 

 

 

 

Employee share option scheme:

 

 

 

 

- proceeds from shares issued

2,026,775

20

141

161

 

 

 

 

 

Effect of share consolidation

(19,909,153)

-

-

-

 

 

 

 

 

At 30 June 2016: ordinary shares of  pence each

278,728,184

2,986

809

3,795

 

 

 

 

 

 

 

As approved at the Company's AGM which was held on 12 May 2016, the Company undertook a share consolidation on 31 May 2016. The purpose of the share consolidation was to seek, as far as possible, to ensure that the market price of each ordinary share is maintained at a broadly similar level following the approval of the special dividend.

 

This effect of the share consolidation was to replace every existing 15 ordinary shares of 1 pence each with 14 ordinary shares of  pence each. This was achieved by the Company initially issuing a Minimis number (3) of ordinary shares of 1 pence each to ensure the Company's ordinary share capital is divisible by 15. Following this, each ordinary share of 1 pence each in the capital of the Company was first sub-divided into 14 ordinary shares of  pence each (the "Intermediate Ordinary Shares"). This was immediately followed by a consolidation of every 15 Intermediate Ordinary Shares into one New Ordinary Share of  pence.

 

 

 

[*] Adjusted EBITDA is reconciled on the Consolidated Statement of Comprehensive Income. Adjusted EBITDA is non-GAAP, company specific measure, and excludes acquisition related and other expenses and share based payment charges

[†] Adjusted profit before tax excludes amortisation of intangibles arising on business combination, share based payment charges and acquisition related and other expenses. Adjusted earnings per share is calculated based on adjusted profit before tax. A full reconciliation is provided in note 3

[‡] Pursuant to IAS 33, the prior period adjusted earnings per share has been adjusted for share consolidation described in note 7

[§] Pursuant to IAS 33, the prior period adjusted earnings per share has been adjusted for share consolidation described in note 7

[**] Adjusted EBITDA is a non-GAAP, company specific measure and excludes acquisition related other expenses and share based payment charges

[††] Pursuant to IAS 33, the prior period adjusted earnings per share has been adjusted for share consolidation described in note 7

[‡‡] Pursuant to IAS 33, the prior period adjusted earnings per share has been adjusted for share consolidation described in note 7


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