NetPlay TV fails to hit Q3 targets despite marketing spend
UK-based interactive gaming company NetPlay TV has reported that despite its level of marketing expenditure, it was not able to achieve the targeted levels of revenue and new customers expected during the third quarter.
The firm posted revenue of £6.4 million ($10.3 million/€8 million) in the third quarter, which represents only a slight loss of the £6.5 million generated in the corresponding period last year.
NetPlay TV also reported a 21% year-on-year increase in new depositing players from 15,566 in Q3 of 2013 to 18,853 this year.
In addition, the firm saw the number of active depositing players increase by 22% from 28,890 to 35,225.
Despite the gains in customers, NetPlay TV said that the levels achieved in the third quarter were not as high as it had hoped.
In a statement, NetPlay TV said: “The group's interim results referred to the widely reported unsustainable level of marketing activity throughout the gaming industry driven by the impending Point of Consumption (PoC) tax a trend that has continued into this quarter.
“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.
“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.
“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.”
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