LONDON (Alliance News) - 32Red PLC Thursday reported a drop in pretax profit in the first half of 2015, despite growth in net gaming revenue, as it increased investments in Italy and was hit by the higher rate of UK point of consumption tax, but the online gaming operator said it has made a strong start to the second half.
32Red reported a drop in pretax profit in the six months ended June 30 to GBP103,427 from GBP1.2 million in the first half of 2014, even though net gaming revenue rose 22% to GBP18.6 million from GBP15.2 million.
It said that profit was hit by increased marketing activity in Italy, leading to a GBP1.0 million loss, as well as the rise in the UK point of consumption tax, of which it had to pay GBP2.0 million in the first half.
Net gaming revenue in the first 12 weeks of the second half of the year was up by more than half, 32Red said.
32Red will pay an interim dividend of 1.1 pence, up 10% on the 1.0p it paid the year before.
"Underpinned by 32Red's exceptional brand, customer offering and marketing expertise, the board remains confident in the group's growth opportunities, both organically and via acquisitions. The regulatory landscape continues to evolve and we remain encouraged by developments in new European markets. With the strong start to the second half of the year and the excellent progress integrating the Roxy Palace business, the board is confident in delivering its expectations for the full year," the company said in a statement.
Shares in 32Red were trading down 3.5% at 72.40 pence Thursday morning.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
