LONDON (Alliance News) - 32Red PLC said Wednesday that it has retained its full-year expectations after gross gaming revenues rose in its first-half and the number of mobile users almost doubled.
The online casino company said in a trading update for the six months to June 30, 2014 that totol gross gaming revenues rose 19% to GBP22.6 million from GBP19.0 million last year. Within the casino business - the lifeblood of the firm - gross gaming revenues rose to GBP20.7 million from GBP17.4 million in the first-half of 2013.
Gross gaming revenues from its Italy Casino rose to GBP1.0 million from GBP0.5 million last year.
The company also reports net gaming revenue after reviewing its revenue recognition policy. Total net gaming revenue rose 30% during the half-year to GBP15.2 million from GBP12.7 million. Within the casino business this was a 22% increase to GP14.0 million from GBP11.5 million in 2013.
The Italian Casino business saw net gaming revenues almost double to GBP0.5 million from GBP0.3 million in 2013 and said that the division continues to broadly trade in line with expectations.
The company said its first-half performance reflects the continued "excellent trading at the Company's flagship operation, the 32Red Casino, which continues to be the Company's main focus and has benefited from increased marketing expenditure in the first half of the year."
Mobile usage jumped during the period, with 32% of total casino gross gaming revenues now coming from mobile devices, almost doubling from 17% for the comparable period in 2013. The casino now has 50,890 active casino customers, up 20% on the first-half of 2013, with 23,566 new players joining in the first six months of the year, up 35% on last year.
Looking ahead 32Red said the strength of its first-half performance has allowed it to commit further resources to "strategic marketing" in the second-half of the year, in order to build on the positive results. The board's financial expectations for the full-year remain unchanged, it said.
In April the company entered into an agreement with Kambi Sports Solutions to provide a fully managed sportsbook service to 32Red. At the time 32Red said that trading was strong with gross gaming revenues for the period to April 28, 2014 up 12% on the same period in 2013.
The online casino company also signed a three-year sponsorship deal with Rangers Football Club in April.
Shares in 32Red were Wednesday trading 1.35% higher at 52.45 pence per share.
By Alice Attwood; aliceattwood@alliancenews.com; @AliceAtAlliance
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