Increased industry marketing spend affects NetPlay TV performance

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NetPlay TV Plc issued its Q3 2014 trading update. The interactive gambling operator who had suffered an H1 2014 profits decline of 50%, reported that revenues had remained broadly flat during the period.

The operator recorded gaming revenues of £6.4 million (Q3 2013: £6.5 million). NetPlay TV plc management stated that the unstainable levels of marketing activity seen throughout the igaming industry, due to the impending UK Point of Consumption (POC) tax, had effected the operator’s performance.

NetPlay TV had stated that Management has conducted a thorough review of its marketing activity and has developed a new strategy designed to deliver improved returns through more cost effective and better targeted marketing spend.

The operator issued the following highlights in its Q3 2014 interim update:

  • 21% increase in new depositing players to 18,853 (Q3 2013: 15,566)
  •  22% increase in active depositing players to 35,225 (Q3 2013: 28,890)
  • High level of marketing spend results in expected full year results to be below market expectations
  • ·Cash balances £13.4m at 30 September 2014 equating to 4.5 pence per share

Commenting on operating performance Bjarke Larsen, Interim CEO of NetPlay Tv stated

“Despite the Group’s level of marketing spend, it has not achieved the targeted levels of new customers & net revenue expected. This situation combined with the current trading environment, & the initiation of POC means that the Board expects current market expectations to be materially lower than forecast.”.

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