Netplay TV warns results to be 'materially lower' than forecasts

17th Oct 2014 13:15

Interactive gaming company Netplay TV declined after it warned that its results will be "materially lower" than forecast.The AIM-listed firm explained that is has continued to face an "unsustainable" level of marketing activity throughout the gaming industry, driven by the impending point of consumption tax (POC).It also increased its marketing spend, but this failed to achieve the expected targeted levels of new customers and net revenue."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," Netplay said.It has now carried out 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.The news came as the group announced positive player numbers for its first quarter, including a 21% increase in new depositing players to 18,853 and a 22% increase in active depositing players to 35,225, with revenues remaining £0.1m lower against the same quarter of 2013 at £6.4m.The share price had fallen 17.97% to 8.10p by 13:36.