29 Jul 2016 07:00
32Red Plc
("32Red" or "the Company")
29 July 2016
Post Close Trading Update
Another record revenue performance
32Red Plc, the award-winning online gaming operator, today provides an update on trading for the six months ended 30 June 2016 (the "Period").
First Half 2016 Summary
The Company has delivered another record net gaming revenue performance in the first half of the year, up 63% to £30.4m (2015: £18.6m). This excellent performance was driven by a combination of strong organic growth in our core business (+32% on 2015), reflecting our highly effective and growing marketing investment, and an increasing contribution from the Roxy Palace business, acquired on 14 July 2015.
Total Net Gaming Revenues (‘NGR’) | H12016 | H12015 | Var |
32Red Casino | £21.2m | £17.0m | +24% |
32Red Other Products | £2.3m | £0.7m | +223% |
32Red Underlying Net Gaming Revenue | £23.5m | £17.7m | +32% |
Italy – 32Red Net Gaming Revenue | £1.1m | £0.9m | +33% |
Total 32Red Net Gaming Revenue | £24.6m | £18.6m | +32% |
Roxy Palace Net Gaming Revenues | £5.8m | - | |
Total Net Gaming Revenue | £30.4m | £18.6m | +63% |
32Red Casino - The 32Red Casino brand continues to achieve strong growth supported by accelerated returns-driven marketing investment. Mobile remained the fastest growing platform both in terms of new player recruitment and revenue, growing by 45% against the prior year and now representing 50% of total 32Red Casino revenues (2015: 42%).
Roxy Palace Casino - Roxy Palace was acquired in July 2015 and successfully migrated to our Gibraltar operations in Q4 2015. The Company has now implemented a new marketing strategy for the Roxy Palace brand, resulting in net gaming revenues of £5.8m for the Period, which are in line with management expectations.
Italy - Italian net gaming revenues for the first half of the year were up 33% on 2015, in line with the Board's expectations and the Company continues to examine ways to broaden its product offering in this competitive but attractive market.
Current Trading and Outlook - Strong trading momentum has continued since the Period end with the number of like for like ('LFL') active users in the first 27 days of July 2016 up 21% on the corresponding period in 2015. LFL Wagering levels are up by 33%, although an unusually weak casino gross win margin resulted in NGR being slightly behind (-2%) a very strong July 2015 comparative. The Company confirms that trading remains in line with the board's full year expectations.
Commenting on the performance, Ed Ware, CEO of 32Red, said:
"I am delighted to report another record revenue performance for 32Red in the first half of 2016. This reflects the core strengths of the business: our strong brands, first class customer service and marketing expertise.
Our excellent growth was achieved despite a very active sports market towards the end of the Period coinciding with the European football championships. This demonstrates the appeal of the 32Red brands and customer experience as well as the opportunities ahead for 32Red to deliver further growth as we exploit marketing opportunities.
32Red is in excellent health with a number of exciting opportunities ahead. We have a focused strategy to deliver continued organic growth as well as potential acquisition opportunities and we continue to look to the future with confidence."
The Group will announce its interim results on Wednesday, 21 September 2016.
Enquiries:
32Red Plc | Tel: +00 350 200 49396 |
Ed Ware, CEO | |
Jon Hale, CFO | |
Numis Securities Limited | Tel: +44 (0) 20 7260 1000 |
Michael Meade (Nominated Adviser) | |
Chris Wilkinson (Corporate Broking) | |
Michael Burke (Corporate Broking) | |
Hudson Sandler | Tel: +44 (0) 207 796 4133 |
Alex Brennan | 32Red@hudsonsandler.com |
Bertie Berger |