Netplay TV PLC (LON:NPT) said an amended format and schedule for its Challenge Jackpot and Bingo Stars shows broadcast on ITV's (LON:ITV) teleshopping window is being introduced tonight which the group believes will improve performance.
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.
It 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, Netplay has continued to work closely with ITV to optimise the performance of the teleshopping airtime, and today’s trading statement follows this. 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 announced in the June statement have begun to feed through, although the full effects will not be seen until Q4 2010.
The 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. It has 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%.
CEO Martin Higginson commented: "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 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," Higginson added.
NetPlay 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, every evening on the terrestrial channels, Five, and STV, plus Freeview and Bravo.