1 Feb 2017 07:00
1 February 2017
32Red Plc
("32Red'' or ''the Company")
Post close Trading Update
Record revenue and EBITDA performance in 2016 in line with expectations
32Red Plc, the award-winning remote gaming operator, is pleased to provide an update on its trading performance for the year ended 31 December 2016.
Highlights:
· Record Net Gaming Revenues (''NGR''), up 28% to £62.3m (2015: £48.7m)
· 77% of revenues derived from regulated and taxed markets (2015: 80%)
· Total Casino NGR up 26% year on year
· NGR from Other Products up 60% year on year
· 32Red moves to profitability in Italian market, in line with expectations
· Strong current trading, up 21% on the prior year
2016 Summary:
The Company has delivered record annual NGR in 2016, up 28% to £62.3m (2015: £48.7m). This strong performance was driven by a combination of healthy organic growth in the core 32Red business (+19% on 2015) and a full year contribution from the Roxy Palace business (acquired in July 2015).
Reflecting the growth across the business, going forward the Group intends to report its NGR as split between Total Casino NGR and Other Products NGR. With 32Red Casino in Italy now profitable and Roxy Palace successfully integrated into the Group, the Board feels this disclosure better reflects the business and its growth opportunities as a predominantly online Casino operator. In 2016, NGR by segment was:
Total NGR | 2016 | 2015 | Var |
Total Casino NGR | £58.5m | £46.3m | +26% |
Other Products NGR | £3.8m | £2.4m | +60% |
Total Net Gaming Revenue | £62.3m | £48.7m | +28% |
Total Casino NGR increased by 26% to £58.5m in 2016 (2015: £46.3m) to represent 94% of total NGR (2015: 95%). This strong growth reflects the increased marketing investment in the 32Red Casino brand, a full year's contribution from Roxy Palace Casino and healthy growth from 32Red Casino in Italy. Revenue from 32Red Other Products continued to grow strongly, primarily driven by 32RedSport which is developing as an increasingly important customer acquisition and retention channel.
Current Trading and Outlook:
The company anticipates announcing its 2016 Preliminary Results on Thursday 9th March 2017. The results are expected to be in line with the Board's previous expectations.Early trading in 2017 has been strong across the Group with revenues for the first 30 days in January up 21% on the corresponding period in 2016.
Commenting on the performance, Ed Ware, CEO of 32Red, said:
"32Red experienced another hugely successful year with profits and revenues breaking previous records, driven by excellent growth in our core Casino products.
We have continued to deliver progress against our clear growth strategy underpinned by the strength of the 32Red brand, effective return on investment-driven marketing and an enhanced customer proposition.
The key strategically important contracts signed during the second half of 2016 will help the Company to deliver its stated growth strategy and the Board remains confident of delivering continued progress in 2017."
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Notes:
According to the Group's prior reporting segmentation, NGR for 2016 was as follows:
Total Net Gaming Revenue (''NGR'') | 2016 | 2015 | Var |
32Red Casino | £45.6m | £39.4m | +16% |
32Red Other Products | £3.8m | £2.4m | +60% |
32Red Underlying NGR | £49.4m | £41.7m | +18% |
Italy - 32Red Casino NGR | £2.3m | £1.7m | +33% |
Total 32Red Net Gaming Revenue | £51.7m | £43.5m | +19% |
Roxy Palace Casino NGR | £10.6m | £5.2m | +103% |
Total Net Gaming Revenue | £62.3m | £48.7m | +28% |
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 |