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NetPlayTV has issued a Q4 trading update
Tuesday January 13,2015 : NETPLAYTV ISSUES TRADING UPDATE
Directorate appointment announced.
The interactive and online gambling group NetPlayTV has issued a Q4 trading update and notification of a directorate change, reporting:
* 4 percent increase in new depositing players to 16,249 (Q4 2013: 15,648)
* 3 percent increase in active depositing players to 33,073 (Q4 2013: 32,163)
* Full year underlying results expected to be in line with current market expectations
* Bjarke Larsen is appointed Chief Executive Officer
The update notes that Netplay has now completed a thorough review of its marketing programme and has subsequently developed a new strategy designed to deliver improved returns through increased cost efficiencies and more accurately targeted marketing spend.
This process included terminating "onerous and inefficient marketing contracts" and working closely with the major TV partners to maximise the effectiveness of its guaranteed TV airtime contracts.
"These strategic changes are already delivering encouraging results," management reports. "Overall Q4 marketing spend has been reduced, the average cost to acquire new depositing players has fallen and average revenue per player has increased."
Management reveals that Q4 2014 revenue is GBP 6.4 million - flat compared with the previous quarter, when similar revenues were achieved. However, when compared year-on-year with Q4 2013's GBP 7.9 million it has declined.
Underlying results for the full year ending 2014 are likely to be in line with market expectations, the statement notes.
"The point of consumption ('POC') tax became effective from 1 December 2014," the update points out.
"Despite this, the group's business remains cash flow positive. The directors believe this, coupled with its strong balance sheet, will put NetPlay in a good position to take advantage of potential consolidation opportunities.
The update also announces the appointment of Bjarke Larsen, currently Interim-CEO and commercial director of the firm, as the permanent CEO with immediate effect.
Charles Butler, non-executive chairman of NetPlayTV, said Monday:
"Bjarke has been with the group for eight years and with his significant company and industry experience is well placed to lead NetplayTV in its next stage of development."
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