NetPlayTV issues warning as Q3 revenues flat-line

NetPlayTV this morning said it would be unable to meet full-year expectations after increased marketing spend could only deliver broadly flat year-on-year Q3 revenues of £6.5m.

The operator said full-year results would be hit after marketing investment failed to deliver the desired results and led to the company having to review and implement a more prudent marketing strategy.

“Despite the Group’s level of marketing spend, it has not achieved the targeted levels of new customers and net revenue expected from this spend,” the company said in a statement.

“This situation combined with the current trading environment, and the initiation of PoC means that the Board expects current market expectations to be materially lower than forecast,” it added.

The warning comes despite NetPlay having posted a 21% increase in new depositing players across the period ended 30 September to 15,566 and a 22% increase in active depositing players to 28,890.

The company also said it remained cash flow generative with cash or cash equivalents totalling £13.4m.

Netplay, which earlier this year said it planned to play an acquisitive role in the consolidation of the industry, underwent managerial change last month shortly after posting a 19% decline in H1 profits.

Commercial director Bjarke Larsen was appointed interim CEO in September after Charles Butler took up a non-executive chairman role following the retirement of Clive Jones.

NetPlayTV’s share price was down roughly 20% to 7.75p this morning at the time of writing.