LONDON (Alliance News) - 32Red PLC said Wednesday that it is confident in meeting its expectations for the full-year after recording a jump in first-half revenue and a strong start to its second-half.
In its interim results for the six months to June 30 the online gaming operator said pretax profit declined 7% to GBP1.2 million from GBP1.3 million. Total net gaming revenue, however, jumped 20% during the period to GBP15.2 million from GBP12.7 million in the first-half of 2013.
Total gross gaming revenue rose 19% to GBP22.6 million from GBP19.0 million last year.
The company increased its interim dividend by 25% to 1.0 pence per share, compared to the 0.8 pence per share paid in 2013.
Within the casino business - the lifeblood of the firm - gross gaming revenues rose 21% to GBP20.4 million from GBP16.9 million in the first-half of 2013.
The number of active casino players increased by 20% during the period to 50,890, compared to 42,455 in the comparative period and the number of new casino players jumped 35% to 23,566, compared to 17,459 last year.
The 32Red mobile casino continues to flourish, said the company, with revenues up 124% on the first-half of 2013, now representing 32% of total casino revenues, compared to 17% in the previous period, and attracting approximately half of all new players.
Gross gaming revenue from its Italy Casino was up 130% for the period to GBP1.05 million, compared to GBP260,000 last year and net gaming revenue was up 94% to GBP0.51 million from GBP260,000 in the comparable period. A total of 3,084 new players were recruited by the business in the first-half, said 32Red, compared to 1,435 in the first six months of 2013, bringing the total number of active players to 5,793, up from 1,887 in the previous year. "The Company has limited marketing investment in Italy ahead of anticipated positive changes in the regulated market due at the end of 2014," said 32Red.
In April the company entered into an agreement with Kambi Sports Solutions to provide a fully managed sportsbook service to 32Red. The company said Wednesday the new sportsbook is now fully integrated with 32Red's Microgaming platform, and that initial trading results and levels of new player recruitment have been encouraging. It will continue to focus on cross selling the casino products to new sportsbook players.
The online casino company said it increased its marketing spend during the period; 32Red signed a three-year sponsorship deal with Rangers Football Club in April. In keeping with similar sponsorship agreements with clubs including Aston Villa Football Club and Swansea City Football Club, the agreement provides 32Red with shirt sponsorship, extensive visibility in the stadium and across the Club's digital and media platforms and access to Scotland's largest football fan base.
The company said the second-half has started strongly with gross gaming revenues for the first 12 weeks up 23% on the corresponding period in 2013. Looking ahead, Chief Executive Ed Ware said the gaming company will continue to focus on its growth strategy, through increased and targeted marketing and maintaining customer service.
"The Board believes that 32Red has commercially viable opportunities to grow both organically and by making acquisitions in the sector. As the regulatory landscape continues to evolve we remain encouraged by developments in potential new markets, both in Europe and the US," said the company in a statement.
"With the strong start to the second half of the year and the recent acquisition of the UK customer database of Go Wild the Board is confident in meeting its expectations for the full year." said 32Red.
The company acquired the UK customer database of the Go Wild casino from Go Wild Malta Ltd earlier this month in a move which will boost its growth in the UK market.
Shares in the company were Wednesday morning trading 2.21% higher at 55.45 pence per share.
By Alice Attwood; aliceattwood@alliancenews.com; @AliceAtAlliance
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