Interactive gaming firm has revealed that the performance of its new Bingo Stars mobile betting solution could ‘significantly impact’ full-year financial results.
Thursday 1st July 2010
Interactive gaming firm NetPlay TV has released a trading update revealing that revenues from its recently-launched Bingo Stars mobile betting solution have been lower than expected and could ‘significantly impact’ full-year financial results.
The British firm premiered Bingo Stars for broadcast online and over Virgin 1, STV and ITV's teleshopping window on May 27 alongside a complementary mobile entry mechanism that allowed for instant gameplay.
“While it is still very early days, the revenues flowing from these instant game players have been much lower than anticipated,” read a statement from NetPlay TV.
NetPlay TV stated that it had become clear that it needed to be ‘very flexible’ in terms of its product outputs and it altered the configuration and scheduling for the programme on June 21 to ‘trial an alternative format in our earlier segment’.
“This product is a more akin to our proven interactive gaming formats,” read the statement from NetPlay TV.
“We have gained a vast amount of knowledge from our current successful and profitable media partnerships and we are using this knowledge to the full, both in terms of potential cost savings and customer playing habits. Early signs are more encouraging with customers depositing funds during the show as well as to the website the following day.
“The move from an instant-play model to more traditional gameplay as well as increased first-half costs will have a material impact on our short-term profit performance. As a result, the directors believe this will have a significant impact on full-year market expectations. The initial costs associated with producing and trialling new gaming formats are high although, as we amend the model to be more in line with our proven formats, we are able to reduce costs significantly with immediate effect.
“The focus on developing new formats, moving technical platforms, migration offshore and improving our core offerings has been a major upheaval for the business. As a result, costs have increased substantially in the short-term. In altering the current format and scheduling as well driving more synergies between our brands, we are able to strip costs out from the business with immediate effect thus protecting cash and the company's balance sheet.”
