I would urge all those who still own shares in Netplay to contact Interactive Investor (or other broker if applicable) via "Contact us" and ask them to make a proxy vote on your behalf AGAINST the Special Resolution to permit the sale of the company to Betsson.
The offer significantly undervalues the shares of the company
Aim-traded shares in Netplay TV (NPT:9.25p) have effectively flatlined since I covered the full-year results in March ('Netplay's shares spin higher', 21 Mar 2016) once you factor dividends in the interim even though the online gaming company is expected to lift full-year adjusted pre-tax profits by 18 per cent to £2.6m and 0.95p, respectively. First-half results revealed that both underlying profits and EPS rose by 30 per cent to £1.44m and 0.52p, so well over half of full-year forecasts are already booked.
Major points worth flagging up include a recovery in trading after a soft second quarter, and ongoing product investment in Netplay's business intelligence data room. This unit supports a data-led approach to marketing following the rollout of Netplay's automated predictive customer retention platform across the SuperCasino and Jackpot247 brands. Enhancements in these capabilities should help deliver improvements in customer acquisition costs and player lifetime values, while the rollout of new games content across both mobile and desktop platforms, and last month's launch of the UK's first Apple TV application which streams Netplay's live roulette products to television, should enhance the player experience. Contract renewals with both ITV and Channel 5 continue to provide its brands a high-profile presence to attract new players.
The other part of the business is a B2B operation specialising in online digital marketing and formed after Netplay made a small acquisition last summer. This unit provides a complementary revenue stream to the consumer division and is trading ahead of expectations to such an extent that the acquisition was effectively acquired on just three times its forecast cash profits this year. Netplay's board is open to deploying some of its £9m cash pile on further acquisitions.
Admittedly, Netplay hasn't been generating the bumper growth of rival 32Red (TTR:134p), a company I initiated coverage on at 51.75p ('Game on', 7 Jul 2013), and last advised running profits at 135p ('Spinning higher', 2 Aug 2016). However, a four point earnings gap between the two is too wide. On 7 times earnings estimates after stripping out net cash, and offering a dividend yield of 6 per cent, Netplay's shares rate a buy.
Hi there, sorry to be frank about your wording (I am a Netplay TV Holder too!) - it's hardly a tie-up with Apple at all, it's just a developed app on their App-store platform, specifically for TV.
Which is a pretty small user-base, smaller still for those who wish to gamble on a on-demand TV device. So personally, I think it's a pretty random market to develop for. Having said that, it's probably developed by Playtech, not Netplay themselves. Secondly, I admit it's an expanding market base.
As for the rest of the results - yes! They do look good. I'm still very miffed they've never updated their phone apps.
Just seen this. The consolidation is to equalise the effect of the special dividend. You will have slightly fewer shares following the consolidation, and the intent of it is that the share price will not move when the special divi is taken into account. Therefore your capital value of your holding will reduce by 14/15ths, but the difference is the same amount as the special dividend you receive. Net net leaving you in the same position.
Thats the arithmetic. Then wait for the market to tell you whether it worked!
I have received this from TD Investing. Can anyone throw any light on why and what effect it might have on stock ?
What is happening?
Payment Date: 31st May 2016
Netplay TV Plc has announced a 14-for-15 Consolidation, whereby holders will be issued with 14 new shares in
exchange for every 15 shares held.
The payment date is 31st May 2016.
On 21 Dec. NPT noted the recent press speculation and confirmed that it had held discussions with SPO in relation to a potential acquisition of The Football Pools business.
On 23 Dec. SPO confirmed that it had received a number of indicative proposals in respect of The Football Pools and that SPO are inviting each interested party to submit their best and final proposals by mid-January 2016. SPO would then consider any such proposals and determine whether it is in the best interests of shareholders to proceed with a sale of the business.
Since then, nothing!
It seems SPO did not receive a must-do deal!
Just maybe the respective boards of NPT and SPO should sit down to explore possibilities
Hello Oxtrader: My impression is that there are two very different scenarios possible here.
One involves outright sale of TFP by SPO. NPT is simply too small to be able to play in that league for TFP is far too big for NPT to buy outright.
The other, the NPT proposal, is a sort of reverse takeover whereby TFP assets and NPT, including Vernons, are brought together in the listed company in which SPO would take a major shareholding.
It is only right that NPT bow out and watch to see if SPO achieve the sale of TFP which they appear to prefer. If it doesn't work out for SPO then they could return to try to work something out with NPT.
They must of either thought better of it or were out-bidded, nevertheless it does show for me 'willing' to expand & grow.
I missed the opportunity to top-up on these shares last year at these prices; following the announcement this morning I've decided to increase my holding by about 30-40% (My initial purchase was at about 10.5p)
Well, I hope for good things for NPT in 2016, we shall see!
According to the Sunday Times, Teddy Sagi, who made a lot from Playtech, is behind Netplay's proposal to Sportech re: TFP. But the ST also asserts that Sagi is a major shareholder in NPT and I can't see any evidence of this?
If Sagi is involved the capitalisation of NPT is tiny compared to Sagi's worth.
It is to be hoped that NPT's board do not get lured into overpaying. I would rather NPT withdrew now for surely the sp can't be suspended for something in the region of a month give or take? Let others scuffle over TFP as doing the football pools is so yesterday - and way before that. Perhaps NPT should invite bids for Vernons too if there is that much interest in that sort of asset.
I personally see very little value in the Football pools - it's an extremely competitive market amongst all the large sportbookers, with it's only USP is that it's an early player in the gambling market.
Hi. Back again.
Guessing based on a little research this morning.
Netplay as a whole makes EBITDA of about £3 - £5m.Their Vernons will make a bit of that.
However within Sportech TFP alone has an EBITDA of several times that - about £16m to £17m.
I'm thinking that what is being considered is putting the TFP operations into Netplay and making Netplay a lot bigger than it is.
By way of consideration, Sportech would take a major shareholding in the new Netplay. Hence the comment about a prospectus. It's the size of that shareholding and what is left for current Netplay shareholders that is being negotiated.
Sportech would receive new Netplay shares which, of course, can then be off-loaded at any time.
As I say, guessing!
Hello! I was going to post earlier but really, I wasn't really sure what this even involves personally (!) My first share to be involved in an RTO in all honesty. So I'll be talking back to basics on this one..
"A type of merger used by private companies to become publicly traded without resorting to an initial public offering. Initially, the private company buys enough shares to control a publicly traded company"
What I'm not sure on, will it be a 'subdivision' of SportTech " The Football Pools business" that will buyout the remaining Netplay Shares?
Netplay TV had its Buy rating reiterated by analysts at Sanlam Securities. They now have a GBP 10.00p price target on the stock.
Netplay TV has a 50 day moving average of 7.88 and a 200 day moving average of 9.36. The stocks market capitalization is 21.87M, it has a 52-week low of 6.75 and a 52-week high of 11.86.
The share price of the company (LON:NPT) was up +1.72% on 17/12/2015, with a high of 7.37 during the day and the volume of Netplay TV shares traded was 47790.
NetPlay TV plc is a United Kingdom-based online gaming company. The Company operates various interactive gaming services under an Alderney gaming license. The Companys brands include Supercasino.com, Jackpot247.com and Vernons.com. Jackpot247 offers casino experience round the clock. Jackpot247 broadcasts with live presenters on ITV six days a week. Jackpot247s show format includes presenter-led show on ITV with live auto wheel projected onto a projector screen. SuperCasino.com is a live casino experience online, on television and on Mobile. SuperCasino.com broadcasts live on Channel 5 with live spinners. SuperCasino.coms show format includes live spinner show on Channel 5 and Sky Channel 862. Vernons is an online gaming brand offering casino, bingo and sports betting to the customers. It does not offer live television show. The Company broadcasts on various platforms, such as online, mobile and tablet, and interactive voice response (IVR).
I believe that's the very reason it's being driven down! Lack of evidence & news to support a Share price of 10/11p.
However on fundamentals alone, NetPlay's P/E is still in the negative as they still aren't making headway profit after costs & tax, I don't think the acquisition has any monetary value in the short term either apart from the extra head count.
It was very early January when they reported on Q4 results last year - we'll have some news soon. On the shop front however:
- They've made their sites responsive with site upgrades, a very basic but important requirement in Web development to support mutli-platform devices. This should increase KPIs for this quarter.
- They finally(!!) updated their Super Casino App on the 1st December 2015 after a period of 2 years I believe it was!
- I watch Jackpot247 sometimes to keep an eye on the program, they do have bonus inflation going on with the Show. Almost every week or month there's an extra bonus % on the deposit to both tie in new customers. This might have an effect on margins.
I might be topping up with these prices to offset my losses (I bought in at 11p) to average down, I do think it's a stable enough company in the long run until one of the TV companies decide to cut ties with netplay!
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