32Red PLC Announce record Revenues
Gambling News - 20th July 2010
32Red Plc has announced record revenues in the first half of 2010 that are 34 percent up from the corresponding period last year. Total revenues for the company were reported at £7.8 million. Revenues from their online casino, 32Red casino were up to £6.8 million – an increase of 29 percent. Active casino players were up 35 percent to 19,497.
The company's new casino player numbers grew by 26 percent with them adding an additional 12,289 players. The yield per casino player fell from £360 to £353, however the cost of adding a new casino player fell 3 percent to £86.
32Red is attributing the growth to successful marketing and the strength of the 32Red brand and operational expertise.
Further revenue of £0.5 million was generated for 32Red with the purchase and integration of the online casinos, Nedplay and Golden Lounge. Not all of the company's operations grew, however with revenue from the company's poker product falling 14 percent to £0.4 million and the bingo product falling 3 percent to £0.1 million.
Ed Ware, CEO of 32Red said, "Our strong first half performance is particularly pleasing given the challenging economic conditions in the United Kingdom, which remains our core marketplace. We believe that the 32Red brand and its core values continue to provide us with the tools to penetrate the online and mobile casino market successfully."
He continued, "Another period of strong recruitment at reduced cost per acquisition rates since the end of 2008 gives us optimism for the prospects of the business going forwards.
The Group has further strengthened its balance sheet and, having repaid all outstanding bank debt, will increase marketing spend during the second half of the year." He added that they will continue to focus on the UK, but will look to expand into new markets if "attractive opportunities arise."
