Industry Analysts are predicting that gaming firm 32Red will continue to have a bright future thanks to the company's very successful first half of 2015.
Financial firm Numis raised the target price of 32Red to 160p from 120p per share, with analyst Ivor Jones saying that he expects the company to have full-year revenue growth of 29%, up from the 18% he previously predicted. 32Red recorded record sales during the first half of the year, and the company's share price has already doubled in price since May.
Company highlights prompting the raised prediction were:
Mobile results were again impressive in the half-year, representing 42 percent of total casino sales.
The number of active players jumped by 22 percent to over 62,000 and there were 12 percent more new players.
But tax hits meant an EBITDA of GBP 1.2 million was recorded, compared with H1-2014's GBP 2.3 million.
First half total net gaming revenue jumped 22 percent to a record GBP 18.6 million, 85 percent of which came from regulated and taxed markets.
Underlying cash profit increased by over half to GBP 4.2 million, but with point of consumption tax charges of around GBP 2 million and a doubling of investment in Italy to GBP 1 million, pre-tax profit plunged 92 percent to GBP 100,000.
Since the first half 32Red's profits have been up 52%.
Commenting on his company's performance 32Red CEO Ed Ware said, "We are delighted to report a record revenue performance for 32Red in the first half of 2015 with NGR from the business up by 22 percent. This performance was underpinned by our strong brand, leading customer offer and return on investment-driven marketing expertise. Excluding the impact of the newly introduced point of consumption tax in the UK, underlying EBITDA was up 57 percent, reflecting the strong operational momentum in the business."