29 Jul 2010 09:50
| Date: | 29 July 2010 |
| On behalf of: | NetPlay TV plc ("NetPlay TV" or "the Company") |
| For immediate release |
|
NetPlayTV plc
Trading Update
Following recent share price movements, the Directors of NetPlayTV wish to provide further guidance following the trading update released on 24 June 2010.
On 24 June, NetPlayTV announced that the revenues flowing from the Challenge Jackpot and the new Bingo Stars shows broadcast on ITV's teleshopping window had been much lower than anticipated. The Directors also stated that the combination of this reduced revenue, together with the increased costs associated with these products, would have a significant negative impact on market expectations for the full year results. In addition, the Company advised that steps had been taken to alter the format and scheduling of the shows in an attempt to increase revenues and reduce costs.
In the month since the last update, the Company has continued to work closely with ITV to optimise the performance of the teleshopping airtime. An amended format and schedule is being introduced tonight which we believe will improve performance. The ITV teleshopping relationship is a trial, and as such the exposure for the Company is finite. We will continue to maximise the airtime working in partnership with ITV to improve performance.
The costs saving measures discussed in our last statement have begun to feed through, although the full effects will not be seen until Q4 2010.
Our core Supercasino.com business has seen improved depositing sign ups over the last month, as well as an increase in player numbers month on month, as a result of renewed focus on this brand. We have however been impacted by a number of large winners reducing the gaming margin for July to 1.3% against an average for the year of 3%.
We continue to explore additional cost savings and new revenue sources for the Company and will keep the market informed accordingly.
Martin Higginson, CEO of NetPlayTV plc said:
"The poor performance of 'Bingo Stars' on the ITV teleshopping window is clearly disappointing, and has had a significant impact on the Company's cash reserves, however it should be noted this was a trial and as such the costs associated with it are finite.
"We have now commenced stripping out the majority of costs associated with this trial and have started the process of refocusing the business on our core product offering. Over the last few weeks we have seen increased depositing sign ups on our Supercasino.com brand as a result of improved TV output, and whilst margin is lower than expected due to a number of big winners, the key matrix is up.
"We remain committed to working with broadcasters to develop interactive revenue generating TV formats, and whilst we have not succeeded in finding the right format for bingo, our casino products continue to deliver solid performance day in day out.
"We have a challenging few months ahead of us, however we remain confident in our core business model. We will continue to work with our broadcast partners to improve formats and performance over the coming months."
- Ends -
Enquiries:
| NetPlayTV plc | www.NetPlayTV.plc.uk |
| Martin Higginson, Chief Executive Officer | Via Redleaf |
|
| |
| Redleaf Communications | Tel: 020 7566 6700 |
| Emma Kane / Rebecca Sanders-Hewett / Mike Ward | NetPlayTV@redleafpr.com |
|
| |
| Panmure Gordon | |
| Katherine Roe / Stuart Gledhill | Tel: 020 7459 3600 |
Notes to Editors:
About NetPlayTV plc
NetPlayTV TV plc is listed on the AIM market of the London Stock Exchange (NPT). NetPlayTV TV operates a number of interactive gaming services under UK, Malta and Alderney gaming licenses, including SuperCasino.com, ChallengeJackpot.com and Bingos.com. These services can also be viewed 24 hours a day live on Sky Channel 866 and 867, every evening on the terrestrial channels, Five, and STV, plus Freeview on Virgin 1, 1am - 4am and Bravo 2 and 24/7 on Virgin Media channel 141.
The Company is focused on the delivery of a converged interactive gaming experience allowing its customers to interact with its games on a variety of platforms, TV, Internet and mobile from a common integrated wallet.