TTR.L Regulatory News (TTR)

32Red Plc

("32Red" or "the Company")

Post Close Trading Update 

32Red Plc, the award-winning online gaming operator, is pleased to provide an update on trading for the six months ended 30 June 2013. 

First Half 2013 Summary 

The Company is delighted to once again report record revenues with total Gross Win up 15% to £19.0m (2012: £16.5m) in the first six months of 2013.

Underlying Performance

Overall performance reflects the continued excellent trading at the Company's flagship operation, the 32Red Casino, underpinned by a continued focus on delivering a superior customer service:-

·; Gross Win (revenue) £16.9m, up 17% on H1 12

·; Active casino customers of 42,455 up 34% on H1 12

·; Casino player yield £398 (H1 12: £457)

·; New Casino players 17,459 (H1 12: 18,724) 

·; Casino cost per acquisition: £159 (H1 12: £166)

32Red.it

The 32Red casino was launched in Italy on 29 November 2012, with slots permitted from 3 December. While initial trading has been softer than anticipated, revenues have grown consistently month on month, with further progress expected from the launch of a mobile casino, along with other services. Growth will be augmented as further products are approved by the Italian regulator, AAMS.

Litigation

On 12 April 2013, following a six day damages enquiry a Judgment confirmed that 32Red Plc had been awarded damages in respect of its trade mark action against members of the William Hill Group. This was confirmed by a formal order sealed on 3 July 2013, which also included an award of costs in 32Red's favour. No appeal was filed and the award is therefore final. 32Red expects that the total liability of William Hill, for damages and costs in respect of all legal proceedings and appeals, will total approximately £1.25m of which £930,000 has already been paid. Any balance (plus interest) will be due once the precise amount has been determined in a detailed assessment procedure. This marks the final step in four years of litigation that has resulted in all of 32Red's trade marks being validated and the removal of an infringing mark from the market.

Customer Service Award

On 28 May 2013 following an industry-wide Mystery Shopper survey, 32Red was ranked top of the inaugural etruvian Customer Service Quality Audit. Customer service is the centrepiece of the 32Red strategy and being recognised in this way supports our commitment to providing a great online casino experience for our players.

Outlook for the Full Year and Current Trading

The ongoing strength in the core business should at least offset the higher than expected start-up losses in Italy, leaving the board's financial expectations for the full year unchanged.

Gross Win for the sixteen days to 16 July is up 13% on the corresponding period in 2012.

Commenting on the performance, Ed Ware, CEO of 32Red, said:

"We are pleased with another strong performance from 32Red. We have maintained our clear focus on providing a high quality experience for our players which is underlined by our trading performance. It is also supported by the results from the recent Mystery Shopper examination undertaken by etruvian across the industry; the survey identified the 32Red customer experience as the very best in the market place.

As with a lot of other new entrants to the Italian market, we are finding progress slower than expected. However, we remain confident that this will develop into an important and lucrative territory for 32Red.'' 

The Group will announce its full interim results on Thursday, 12 September 2013.

18 July 2013

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