LONDON (Alliance News) - Shares in online betting and gaming company 32Red PLC were trading higher Thursday, after the group said that total revenues for the financial year ended December 31, 2013 rose by a huge 21%, driven almost solely by its casino business.
In a trading update for the financial year just ended, the casino, poker and bingo operator said that total revenues increased to GBP38.8 million for the year, up 21% when compared with GBP32.1 million a year earlier.
Out of this, GBP35.6 million was generated from its largest division 32Red Casino, while GBP2 million came from other products, and Italy, a market it only entered at the end of 2012, generated a total of GBP1.3 million in revenues for the year.
32Red said that casino revenues were boosted by almost a 14,000 increase in active players compared to the previous year, supplemented by increased marketing expenditure and new player recruitment in the second half of the year. It said that active players increased to 71,266 from 57,338 the prior year.
The gaming group said that although the number of active players rose, the number of new players and the yield per active player both fell.
It said that new players for the year fell to 38,033, down from 41,918 the prior year, while the yield per active customer was GBP485, compared with GBP500 the prior year.
"The sustained growth in the underlying business enabled the company to increase its investment in Italy, while still delivering profits in line with management expectations for 2013," the company said in a statement.
Chief Executive Officer Ed Ware said: "Trading momentum has continued into 2014 and I am confident that our recent step up in marketing investment, increased focus on (customer relationship management), and the bolstering of our board leave us well placed to make further progress in the year,"
32Red shares were trading 5.5% higher midday Thursday, at 84.14 pence per share.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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