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23 Jul 2014 07:00
32Red Plc
("32Red" or "the Company")
Post Close Trading Update
32Red Plc, the award-winning remote gaming operator, today provides an update on trading for the six months ended 30 June 2014.
First Half 2014 Summary
The Company once again reports record revenues with total Gross Gaming Revenue up 19% to £22.6m (2013: £19.0m) in the first six months of 2014.
Gross Gaming Revenues (GGR) | H1 2014 |
| H1 2013 |
| Variance |
Casino GGR | £20.7m |
| £17.4m |
| +19% |
Other GGR | £0.8m |
| £1.1m |
| -24% |
Total Underlying GGR | £21.5m |
| £18.5m |
| +16% |
Italy Casino GGR | £1.0m |
| £0.5m |
| +130% |
Total GGR | £22.6m |
| £19.0m |
| +19% |
In the 2013 Annual Report, the Company announced that it had reviewed its revenue recognition policy and now reports Net Gaming Revenue (rather than Gross Gaming revenue). During the first six months of 2014, Net Gaming Revenue increased by 20% to £15.2m (2013: £12.7m).
Net Gaming Revenues (NGR) | H1 2014 |
| H1 2013 |
| Variance |
Casino NGR | £14.0m |
| £11.5m |
| +22% |
Other NGR | £0.7m |
| £0.9m |
| -25% |
Total Underlying NGR | £14.7m |
| £12.4m |
| +18% |
Italy Casino NGR | £0.5m |
| £0.3m |
| +96% |
Total NGR | £15.2m |
| £12.7m |
| +20% |
Underlying Performance
Overall 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 benefitted from increased marketing expenditure in the first half of the year:-
· 32Red GGR: £20.4m, up 21% on H1 13
· Active casino customers of 50,890 up 20% on H1 13
· Casino player yield £400 (H1 13: £398)
· New Casino players 23,566, up 35% on H1 13
· Casino cost per acquisition: £180 (H1 13: £159)
· Mobile represents 32% of total Casino GGR (H1 13: 17%)
32Red.itGGR from the 32Red Italian Casino is up 130% to £1.05m (H1 13: £0.46m) and NGR up 94% to £0.51m (H1 13: £0.26m). A total of 3,084 new players were recruited in the first half (H1 13: 1,435) bringing the total number of active players to 5,793 (H1 13: 1,887). The Company has decided to refrain from increasing marketing levels in Italy ahead of positive changes in the regulated market due at the end of 2014. Despite this, trading continues to be broadly in line with expectations.
Outlook for the Full Year and Current Trading
The continued strength of the business allows the Company to commit further resources to strategic marketing in H2, building on the positive performance in the first half. The Board's financial expectations for the full year remain unchanged.
Gross Gaming Revenue for the twenty-one days to 21 July is up 45% on a relatively weak corresponding period in 2013.
Commenting on the performance, Ed Ware, CEO of 32Red, said:
"We are pleased to report yet another record performance for our business, spearheaded by 19% growth in the 32Red casino. The initial results from our recently launched 32RedSport, which provides players with seamless access to a premium online and mobile sports betting product, have also been encouraging."
The Group will announce its full interim results on Wednesday, 24 September 2014.
23 July 2014
Enquiries:
32Red Plc | Tel: 00 350 200 49396 |
Ed Ware, CEO |
|
Jon Hale, Finance Director |
|
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Numis Securities Limited | Tel: +44 (0) 20 7260 1000 |
Chris Wilkinson (Corporate Broking) |
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Michael Meade (Nominated Adviser) |
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Instinctif Partners | Tel: + 44 (0) 20 7457 2020 |
Jamie Ramsay |
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Matthew Smallwood |
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