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22 Jan 2015 07:00
32Red Plc
("32Red" or "the Company")
Trading Update
Strong trading in H2, 5th consecutive year of double digit growth
32Red Plc, the award-winning remote gaming operator, is pleased to provide an update on its trading performance for the year ended 31 December 2014.
2014 Summary
The Company announces record annual net gaming revenues, up 26% to £32.1m in 2014 (2013: £25.4m), marking the 5th consecutive year of double digit growth.
Total Net Gaming Revenues | 2014 | 2013 | Var |
Casino | £29.3m | £23.1m | +27% |
Other products | £1.7m | £1.6m | +5% |
Total Underlying Net Gaming Revenue | £31.0m | £24.7m | +25% |
Italy - Net Gaming Revenue | £1.1m | £0.6m | +74% |
Total Net Gaming Revenue | £32.1m | £25.4m | +26% |
Underlying Casino Performance
Overall performance continues to be led by the ongoing growth in the 32Red Casino and the increased investment in marketing, which has resulted in 17% growth in new players and 15% growth in total active players.
32RedKey Performance Indicators | 2014 | 2013 | |
Active players | 82,155 | 71,266 | +15% |
New players | 44,385 | 38,033 | +17% |
Gross Gaming Yield per active player | £510 | £485 | +5% |
Cost per acquisition | £184 | £156 | +18% |
Focus has remained on mobile device casino development and revenues are up 89% on 2013 and now represent 32% of total casino revenues (2013: 21%). Over one half of all new players are now recruited via smartphones and tablets.
32Red.it
Net Gaming Revenue generated from casino operations in Italy increased by 74% to £1.1m in 2014 (2013: £0.6m). This growth is satisfactory given the Company's decision to limit marketing spend in Italy ahead of the anticipated withdrawal of unregulated operators from the market with effect from the end of 2014.
As part of an increased commitment to marketing in Italy in 2015, the Company's new series of television adverts began airing from 2 January 2015 and we look forward to updating shareholders on progress in due course.
Current Trading and Outlook for 2015
Early trading in 2015 has been strong across the Company's products with revenues for the first twenty days in January up 31% on the corresponding period in 2014.
It is too early to gauge the lasting effects of the new licensing regime on the UK remote gaming market which came into force on 1 November 2014. However, there are fewer brands legally accessing the UK marketplace and 32Red's revenues in the month of December reached record levels.
Commenting on the performance, Ed Ware, CEO of 32Red, said:
"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."
The Group will announce its preliminary results on Thursday, 5 March 2015
22 January 2015
Enquiries:
32Red Plc | Tel: 00 350 200 49396 |
Ed Ware, CEO | |
Jon Hale, CFO | |
Numis Securities Limited | Tel: +44 (0) 20 7260 1000 |
Chris Wilkinson (Corporate Broking) | |
Michael Meade (Nominated Adviser) | |
Instinctif Partners | Tel: + 44 (0) 20 7457 2020 |
Mark Reed | |
Antonia Pollock |
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