18 Jan 2010 07:00
32Red Plc
("32 Red" or "the Company")
Trading Update
32Red Plc, the award-winning online gaming operator, is pleased to provide an update on trading for the year ended 31 December 2009.
2009 Summary
A strong second half performance from the 32Red Casino saw gaming revenues for the Company reach £12.8m for 2009. Total Gaming revenues in H2 09 of £6.9m are up 18% on H1 09 and up 8% on H2 08. This strong trading performance is in contrast to the 11% year-on-year decline in business reported for the first half of 2009 and resulted in full year 2009 Gross Win being just 1.6% down on 2008.
The Company's flagship operation, the 32Red online casino, generated Gross Win of £11.5m for the year (2008: £11.7m) and led the Company's second half recovery. 32Red Casino revenues in H2 09 were up 21% on H1 09 and up 11% on H2 08. This turnaround in 32Red's performance coincides with the removal of the 32Vegas online casino website on 4 August 2009 which the Board believes is a significant factor in the improvement in 32Red's performance over the second half of the year.
The Company's return to strong growth underlines the Board's commitment to take action to protect 32Red's intellectual property.
32Red Key Performance Indicators:
Gross Win £12.8m (2008:£13.0m)
H2 09 Gross Win up 18% on H1 09 and up 8% on H2 08
Casino Gross Win £11.5m (2008:£11.7m)
H2 09 Casino Gross Win up 21% on H1 09 and up 11% on H2 08
Active casino customers 25,187 up 15% on 2008
Casino player yield £458 (2008: £537)
New Casino players 19,117, up 23% on 2008
Casino cost per acquisition: £95 (2008: £119)
Trading Update
Trading in 2010 to date has been strong across the Company's products and the Board looks forward to a successful and exciting year. Preliminary results for the year ended 31 December 2009 will be announced in early March 2010.
Commenting on the performance, Ed Ware, CEO of 32Red, said:
"Our strong recovery in the second half of the year and, in particular, the strong recruitment of new players at reduced cost per acquisition rates has been pleasing and leaves the Company well positioned for 2010 and beyond. The withdrawal of the 32Vegas site in early August was a key factor and the Directors remain committed to protecting our trade marks.
We will now increase marketing investment in 2010 and, while focus remains on the core 32Red casino product, we will also look to develop supporting products, including the newly launched sports betting service, 32Red Bet. The Board continues to monitor regulatory developments in Europe and the Rest of the World with a view to expanding into new markets should an attractive opportunity arise."
18 January 2010
Enquiries:
| 32Red Plc | Tel: 00 350 200 49396 |
| Ed Ware, CEO | |
| Jon Hale, Finance Director | |
| Numis Securities Limited | Tel: +44 (0) 20 7260 1000 |
| Chris Wilkinson (Corporate Broking) | |
| Michael Meade (Nominated Adviser) | |
| College Hill Associates | Tel: + 44(0) 20 7457 2020 |
| Matthew Smallwood | |
| Jamie Ramsay |