Netplay TV Share Discussion Threads

[nick rubens] 19/11/2015 12:34

Cheers for the feedback. I have more respect for cash balances earned, rather than sponged from placings.

Maybe the management can turn round the unfortunate situation (tax wise) put on the business by the government. Still it does look dire for earnings though.

[spob] 17/11/2015 21:23

the cash was accumulated in a zero tax environment

that environment is now history

[casabella2] 16/11/2015 13:26

Hi there, been here a while and i would say the cash balance has been accumulated through profitable trading.c2

[nick rubens] 16/11/2015 12:32

cheers Alan@bj

It's a healthy cash position. I don't know the history of this company but I find that most companies with cash in balance sheet have simply prior tapped shareholders for it.

Do you know if Netplay raised most of this cash from shareholders or accumulated it from any prior profitable trading?

cheers NR

[genesisark] 13/11/2015 17:21

Oh I missed that and was bothering about the 'money going to some invisible company' stuff, which must be something buzzing around in someone's bonnet.

Clearly just because they don't give details online of their operations, that doesn't mean a hoot.

If they took my business over, nobody would be able to find much apart from the basic annual financials.

If I were guessing, given Netplay's comments about looking for new ways of getting customers and given that the Otherside website mentions affiliates and lead generation, perhaps they are headed partly in the direction of XLM business model.

[alan@bj] 13/11/2015 17:07

Nick - This is from the Final Results announcement:-

"Cash balance

The Group's cash balance increased to GBP14.2m, which is equivalent to 4.8 pence per ordinary share in issue at 31 December 2014 (2013: 4.7 pence per ordinary share). Of this balance GBP2.1m is in relation to balances which players have in their gaming account on deposit with NetPlay TV (offsetting the player funds liability) leaving a corporate cash balance of GBP12.1m (2013: GBP12.2m), which is equivalent to 4.1 pence per ordinary share (2013: 4.1 pence per ordinary share)."

The current market cap is £23.7m according to ADVFN. Cash at the half year was £15.8m and the company then paid £2.7m to acquire Otherside Inc. Cash generation in 2014-15 was £3m, so assuming 2015-16 is similar (and that the further £0.5m due to the former owners of Otherside pretty much come from what Otherside earns)then the cash position at 31/3/2016 should be back to £15.5m-£16m, or about two thirds of the current market cap.

[alan@bj] 13/11/2015 16:57

genesisark - actually Netplay did give that information in their RNS dated 12th August, which states:-

"Information on Otherside

Founded in 2008, Otherside specialises in online marketing, display media and affiliation, underpinned by its proprietary online marketing platform across a range of sectors. Otherside generated revenues of GBP2.6m, Adjusted EBITDA* of GBP0.6m and profit before tax of GBP0.4m in its unaudited financial information for the financial year ended 31 May 2015. This transaction constitutes a substantial transaction under the AIM Rules.

Terms of the Acquisition

The consideration for the Acquisition, for the trade and assets of Otherside, comprises an initial consideration of GBP2.7 million, to be satisfied by a cash payment from the Group's existing cash resources. Further consideration of GBP0.5 million is payable over 12 months from date of completion subject to the vendor completing certain deliverables as well as the continued employment of certain key individuals."

[genesisark] 13/11/2015 14:19

OK here you go, from the news link below:

"Otherside generated revenues of £2.6m, Adjusted EBITDA of £0.6m and profit before tax of £0.4min its unaudited financial information for the financial year ended 31 May 2015."



So why Netplay didn't give any details of Othersides turnover, profit etc. is very odd, unless they are hoping to keep it quiet for some reason (competition ?)

Its not quiet now anyway. Looks OK.

[nick rubens] 13/11/2015 13:46

A lot is said of Netplay TV's cash position being strong etc. However that usually means secured salaries for executives more than anything much else.

Is their anyone who has followed this company the last decade that can confirm where the strong cash position originates from? Is it from strong prior earnings or just placing's etc? cheers NR

[jim digriz] 13/11/2015 09:44

Hard to explain discrepancy between this going gradually down and 32Red racing ahead. I thought we had better results personally. Ah, well. And although it's hard to find much about Otherside Inc. online there certainly seem to be a few people who identify as working for them on Linkedin.

[alan@bj] 28/10/2015 12:41

The NetplayTV website is also poor. And the Financial Calendar on it has the Interim Dividend as being payable tomorrow when it was actually paid on the 22nd.

[archway1] 28/9/2015 20:19

Yes but that's one of the main reasons to buy here.
The small fry have to buy each other up in order to survive.
Only the largest will.
NPT is trying to buy others or is it simply putting itself in the shop window?

And it may be snapped up for loose change for some, but for NPT shareholders it will be considerably north of where we are now.
Therefor its a win win strong buy situation here.

[trentendboy] 28/9/2015 09:48

Interesting but when you think that GVC are paying ovr a billion for BPTY companies like NPT are really small fry and it makes you wonder what you can really buy with 15 million.

Likewise, NPT could be snapped up any time for loose change if they start doing well. It will be harder for the small players especially the marketing cost war just to get punters in through the door.

The TV deals should help here. They just need to keep going.

Still confident and nice yield at the moment

[archway1] 27/9/2015 19:21

NETPLAY EYES NORDIC EXPANSION.

Live gaming TV company NETPLAY intends to expand to the Nordics by acquiring an established online gambling brand in the region.
Netplay Chief exec Bjarke Larson says the Nordics are attractive because
they're looking to regulate online gambling. In the Nordics there is a lot of growth and there are a few established brands but its not a regulated territory yet.We are looking to acquire brands that are established there said Larson.
Larson said there are selective acquisition opportunities in the UK which it has been reviewing but he says the main focus in the UK is organic growth.
We are confident the UK market still offers an opportunity for growth he said.
It follows the £29.3 mill mkt caps acquisition of digital marketing business Otherside in August and a host of mergers in the sector from the likes of Betfair and Paddypower and Ladbrokes/Corals
Netplay has a strong balance sheet with net cash of £15.8 million , which means its well positioned to make further deals.
Exposure to European markets, potentially via an acquisition could improve scale quickly says Sanlam Securities analyst Amisha Chohan.

At 9.9p NetPlay is a profitable ,cash generative business with a dividend yield of 5.6% and good growth potential.
BUY.

[trentendboy] 27/9/2015 16:32

Nordic deals with who? TV or websites?

[hastings] 16/9/2015 18:53

A few thoughts that may be of interest.

[trentendboy] 16/9/2015 15:57

Snap up small rivals!

Hardly BPTY and GVC level.

How many small rivals are there? This is a global industry.

They are small fry and will be eaten alive soon imo by one of the bigger boys

[alan@bj] 16/9/2015 12:12

I'm getting fed up hearing about people getting pilloried for making simple gaffs.

Investors Chronicle latest summary on NetplayTV, following considering of results:-
"With mergers and acquisitions the name of the gambling game at present, Netplay TV is well positioned with its near £16m cash pile to snap up rivals. Strip out that cash and the shares trade on just 7 times earnings. The one-off tax hit has been disruptive, but there's value here. We remain speculative buyers."