Revised marketing strategy puts NetPlay back on track
Operator says it will meet market expectations despite additional burden of PoC
NetPlay TV will meet market expectations for net revenue and adjusted EBITDA for the year ended 31 December 2015 after implementing a new marketing strategy, the operator said in a trading update this morning.
The operator, which runs the SuperCasino and Vernons brands, said group KPIs remained strong and the firm continues to be highly cash generative after steps were taken to mitigate against the additional burden of PoC.
“Following the successful implementation of the Group’s revised marketing strategy and previously announced PoC mitigation programme, the Board is pleased to announce that it has been successful in offsetting a significant proportion of the PoC impact,” NetPlay said in a statement.
For the six months ended 30 June 2015, NetPlay reported net revenues of ?12.7m, down from ?14.5m for the same period in 2014, while EBITDA stood at ?1.3m.
The news will be a boost after the operator issued a trading update in October in which it said a high level of marketing spend was expected to put full year results below expectations.
NetPlay also said that it has secured a number of contract extensions until 2019 with key broadcast partners ITV and Channel 5.
“The relationships with these terrestrial broadcasters are core to NetPlay’s marketing strategy, and these continue to be an important and unique source of customer acquisition for the Group,” the operator said.
NetPlay shares were up more than 5% this morning on the news to 8.94p at time of writing.