LONDON (Alliance News) - 32Red PLC saw its shares rise early Thursday after it said net gaming revenue rose by more than a quarter in 2014, marking a fifth consecutive year of double-digit growth, and said revenue growth had accelerated in the first few weeks of 2015.
The remote gaming operator said total net gaming revenue rose 26% to GBP32.1 million in 2014, from GBP25.4 million in 2013, mainly on the back of a 27% increase in its biggest Casino offerings to GBP29.3 million, from GBP23.1 million. Revenue for its other products rose 5% to GBP1.7 million, while the separately reported net gaming revenue in Italy rose 74% to GBP1.1 million.
The company said the number of new players was up 17% on the year to 44,385, with over half now being recruited through smartphones and tablets, while the number of active players increased 15% to 82,155. Gross gaming yield per active player rose 5% to GBP510, from GBP485. However, its cost per acquisition rose 18% to GBP184, from GBP156.
32Red said early trading in 2015 has been strong across its products, with revenue for the first 20 days of the year up 31% on the same period in 2014.
"We performed well throughout the year with an accelerating performance in the second half following increased investment in our business. Our marketing and operations have never been in better shape and we are excited by the opportunities for 32Red to further develop this year both within and outside the UK market," Chief Executive Ed Ware said in a statement.
The company did caution that it's too early to gauge the lasting effects of the new licensing regime on the UK remote gaming market which came into force last November.
"However, there are fewer brands legally accessing the UK marketplace and 32Red's revenues in the month of December reached record levels," it said.
32Red will put out its full 2014 results on March 5.
Its shares were up 13.1% at 46.65 pence early Thursday, making it one of the best-performing stocks on the AIM All-Share index.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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