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32 Red revenues up 27% in 2008; financial spread-betting soon

The popular UK online gambling casino public company 32Red plc has reported a good set of results in a trading update for the year ended 31 December 2008, with significant growth during the year featuring total gaming revenues of £13.0 million, an increase of 27% on 2007. The company's flagship operation, the 32Red online casino, performed strongly and grew by 30%, generating an impressive Gross Win of £11.7 million (2007: £9.0 milion).

Operating profit before share option costs was £1.5 million, up from £1.3 million, and earnings before interest, taxation, depreciation, amortisation and share option costs was £1.8 million, up from £1.6 million.

The strong year-on-year growth in casino revenues has been driven by both increased active player numbers, up 15% on 2008, and an improved yield per player of £536, up 13% on 2008.

However, online poker fared less well with a fall in revenues of 13% compared with 2009, prompting a decrease in poker marketing in favour of an increase in casino marketing budget.

The company intends to authorise a share buyback programme in 2009 and to set out plans to reinstate its dividend policy. Bank debt at year end stood at £250,000.

Key Performance indicators included:

  • Gross Win £13.0 million, up 27% on 2007
  • Casino Gross Win £11.7 million, up 30% on 2007
  • Active casino customers 21,808, up 15% on 2007
  • Casino player yield £536 (2007: £474)
  • New Casino players 15,567, up 7% on 2007
  • Casino cost per acquisition £118 (2007: £137)

Management reports that trading in 2009 to date has been strong across the company and the Board anticipates a successful and exciting 2009.

Preliminary results will be announced in early March.

Commenting on the performance, CEO Ed Ware, said: “The refocus on the core product, 32Red Casino, has yielded encouraging results. 32Red Bingo, 32Red Mobile and 32Red Spreadbet have all been added to our platform and are helping us to grow our customer base.

"Our good performance in 2008 puts 32Red firmly back on its growth path with revenues from our core business, the 32Red casino, growing strongly. We will continue to increase our marketing spend in 2009 and anticipate good results from our recently launched television advertising campaign in the United Kingdom.

"We will continue to compete effectively against our larger peers through our existing platforms and the addition of new products to the 32Red portfolio including financial spread betting, due to go live later this month."

The company's CMC Markets white label financial spread betting and contracts for difference (CFD) platform is branded 32Red Spreadbet. The company also plans a 32Red Bet sportsbook for 2009.”

Source: InfoPowa News

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