A 626% increase in betting and gaming duties isn’t holding back interactive TV gaming company NetPlay TV (NPT:AIM) which is treating investors to a special dividend after reporting full year results at the top end of market expectations.
Adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) fell from £3.6 million to £2.7 million in 2015, but this was the first full year when it had to pay the 15% UK Point of Consumption Tax.
Excluding this tax, which totalled £3.8 million in 2015, EBITDA more than trebled to £2.5 million. The news sends the shares up 13% to 9.8p.
Revenue slipped by 4% to £26.3 million as a result of the new targeted marketing strategy which NetPlay introduced at the end of 2014. The new strategy aims to improve the group’s return on investment by focusing on its more valuable broadcast relationships.
NetPlay has cash of £13 million after paying £2.6 million for its acquisition of digital marketing business Otherside last year. Chief executive Bjarke Larsen says the business is looking out for other acquisitions that add value for shareholders.
For now they’re been rewarded with a proposed increase in the final dividend from 0.33p to 0.34p per share and a special dividend of 0.68p per share.