32Red Plc, the award-winning online gaming operator, is pleased to provide an update on trading for the year ended 31 December 2011.
The Company is delighted to report record revenues in 2011, up 48% to £25.0m (2010: £16.9m). This growth is particularly encouraging in light of the strong 2010 comparative figures that were, in turn, 33% ahead of 2009. Consequently, 32Red's 2011 revenues are 96% ahead of those recorded in 2009.
Casino (Ex Acquisitions)
Total Revenue (Ex Acquisitions)
Revenue from Acquisitions
Overall performance is once again dominated by the growth in the 32Red Casino which has been driven by significant new player recruitment throughout the year, particularly during the last quarter.
Excluding acquisitions, a total of 27,648 new depositing players* were recruited in 2011, up 42% on 2010 at an average cost per acquisition of £143 (2010: £133). We will continue to grow marketing investment and believe this performance will have a positive effect on activity levels in 2012 and beyond.
This accelerated new player recruitment has resulted in total active depositing players* increasing by 39% to 39,687 during the year, with average yield per depositing active player up to £550 (2010: £519).
Despite the further increased levels of marketing spend throughout the second half of the year, the continued strengthening of revenue growth will result in 32Red Plc delivering profits comfortably ahead of current market expectations for 2011.
Current Trading and Outlook for 2012
Trading in 2012 to date has been strong across the Company's products with Gross Win for the first twenty-four days in January up 67% on the corresponding period in 2011.
The Company is also pleased to announce that it has applied for an Italian remote gaming licence and, if successful, intends to commit marketing and operational resources in 2012 to gain a foothold in the Italian online casino market.
Commenting on the performance, Ed Ware, CEO of 32Red, said:
"2011 has been another year of progress and the sustained top line growth is encouragement to continue to invest in marketing the 32Red brand. Meanwhile, we will take measures to ensure that the level of service and support we provide to our players remains our point of difference and bolsters retention.
We were thrilled to be recognised by eGaming Review as Casino Operator of the Year in November 2011 and we are also very proud to have recently been awarded GamCare Certification. Once again, the player forum and fair play advocate, Casinomeister, has bestowed the prestigious title of Casino Operator of the Year upon us for the ninth consecutive year, which is deeply gratifying for everyone in the team.
Although we recognise the potential for uncertainty in the economy at home and abroad, we look forward to further progress during 2012. We also believe Italy represents a good opportunity for 32Red to establish itself as a leading remote gaming operator in a new market and we maintain a watching brief on other regulatory developments around the world."
The Group will announce its preliminary results on Wednesday, 7 March 2012.
26 January 2012
* In previous periods, the Company has reported the number of players by defining a player as a customer who has placed a real money bet during the period. The Company feels it is now more relevant to users of the accounts to amend the definition of a player to a customer who has played for real money but has also made a deposit during the period. This new definition is used in today's trading statement. For reference, under the old definition the number of new players in 2011 totalled 56,178 (2010: 21,853) and the number of active players who placed a real money bet in 2011 totalled 68,217 (2010: 30,933).
Tel: 00 350 200 49396
Ed Ware, CEO
Jon Hale, Finance Director
Numis Securities Limited
Tel: +44 (0) 20 7260 1000
Chris Wilkinson (Corporate Broking)
Michael Meade (Nominated Adviser)
Tel: + 44 (0) 20 7457 2020
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