TTR.L Regulatory News (TTR)

31 Jan 2008 07:01

32Red Plc31 January 2008 32Red Plc("the Company") Trading Update 32Red Plc, the award-winning online casino, poker and sportsbetting operator, ispleased to provide an update on trading for the year ended 31 December 2007. Casino and Poker The 32Red business as a whole has performed well during 2007 and has experiencedyear-on-year growth in both turnover and the number of active players during theyear, principally led by a strong casino performance. The 32Red casino businesshas seen revenues increase by 7.6% following a 26% increase in active players.The 32Red poker business enjoyed more active players than in the previous periodbut experienced a reduced yield per player, in line with the industry as awhole. Trading for the year ended 31 December 2007 is expected to be in line withmanagement expectations. 32Red intends to expand its European profile in 2008and will shortly launch a French Language Casino service as the first of anumber of entries into targeted European territories. The move into Francefollows the launch of the 32Red mobile casino earlier this month and representsthe first stage in a roll out of the core 32Red products and services. 32Red Key Performance Indicators*: • Gross Win £10.2m, up 5.6% on 2006 - Casino Gross Win £9.0m, up 7.6% on 2006 - Poker Gross Win £1.2m, down 7.3% on 2006 • Active customers 33,745, up 17.0% on 2006 - Casino active players 18,992, up 26.6% on 2006 - Poker active players 14,753, up 6.6% on 2006 • Player yield - Casino player yield £474 (2006: £557) - Poker player yield £82 (2006: £95) • New customers 25,640 up 14.3% on 2006 - New Casino players 14,568, up 19.3% on 2006 - New Poker players 11,054, up 8.2% on 2006 • Cost per Acquisition (inclusive of affiliate costs) - Casino & poker cost per acquisition £87 (2006: £114) - Casino cost per acquisition £137 (2006: £184) - Poker cost per acquisition £22 (2006: £29) SportsbettingShortly after the relocation of the Betdirect business from Liverpool toGibraltar in July 2007, the Company accepted an offer of £5.75m from Stan James(Gibraltar) Ltd for the Betdirect brand, customer database and certain businessassets. The sale was completed successfully on 10 December 2007. 32Red has anagreement with Stan James for the provision of a white label Sportsbettingservice. Bingo32Red will shortly enter the Bingo market with 32RedBingo.com. Due to launch inearly February, the Company aims to take a share of the burgeoning online bingomarket, initially in the UK. Asia Pacific Region32Red continues to actively investigate commercial opportunities in this regionand will provide an update in due course. Commenting on the performance, Ed Ware, CEO said: " Following the sale of Betdirect in October 2007, the Group returns immediatelyto a cash generative position. Management focus is now 100% on the coresuccessful 32Red brand. The launch of new products and new language servicesherald the start of 32Red's next phase of growth". "I am delighted that 32Red has again been awarded Best Casino by Industrywatchdog and Player Advocate Casinomeister this month. As the industry's mostprestigious and independent award, we take encouragement that 32Red continues toset service standards in a competitive industry.'' Trading Update We are pleased with trading in the first few weeks of 2008 with strong growthover 2007 being experienced in all areas of the casino and poker room. The Boardlooks forward to a refreshed and re-focused 2008 for 32Red. 31 January 2008 *KPI's are stated in respect of the ongoing 32Red businesses and excludesfigures from Betdirect casino and poker operations. Enquiries 32Red Plc 00 35 049 396Ed Ware, CEOJon Hale, Finance Director Numis Securities Limited +44 (0) 20 7260 1000Chris WilkinsonLee Aston Collegehill +44 (0) 20 7 457 2020Matthew Smallwood This information is provided by RNS The company news service from the London Stock Exchange