NetPlay overhauls marketing as Q4 revenue falls 19%

NetPlay TV has cancelled a number of contracts as part of a major marketing overhaul as the firm seeks to turn around a 19% fall in Q4 revenues.

In a trading update released this morning the operator said it had put into place an entirely new marketing programme after terminating “onerous and inefficient marketing contracts” and pledged to work more closely with its major TV partners.

“[The new strategy] is designed to deliver improved returns through increased cost efficiencies and more accurately targeted marketing spend,” the statement read.

While the firm noted the strategic changes to marketing had resulted in lower customer acquisition costs and higher average revenue per player, revenues for the three months ended 31 December were down 19% year-on-year to £6.4m.

However the company said its underlying performance for 2014 remains in-line with market expectations and NetPlay’s board of directors said the company is in a “good position to take advantage of potential consolidation opportunities” arising from the UK’s Point of Consumption tax.

Former chief executive Charles Butler first spoke of potential post-PoC M&A activity in April last year, telling eGaming Review that NetPlay was to position itself to “be part of that consolidation play”.

NetPlay also confirmed it had appointed former commercial director Bjarke Larsen as its permanent chief executive with immediate effect, making permanent the interim role handed to him in September last year.

Larsen replaced Charles Butler who assumed a non-executive chairman role and Butler said he was “delighted” to make the appointment permanent.

“Bjarke has been with the group for eight years and with his significant company and industry experience is well placed to lead the company in its next stage of development,” Butler said.