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32Red Online gambling firm enjoys a successful first half

The Gibraltar-based online betting and gaming firm 32Red has reported record revenues with total gross win of GBP7.8 million in the half-year to end-June (H1 2009: GBP5.8 million).
 
The performance was underpinned by good results at the company's flagship operation, the 32Red Casino, which has continued to flourish in the first half of 2010.
 
Trading stepped up once again during H1 2010 with casino operations experiencing strong levels of performance across all disciplines:
 
* Gross win GBP6.8 million ( H1 2009: GBP5.2 million)
 
* Active casino customers 19,497 up 35 percent on H1 2009
 
* Casino player yield GBP353 (H1 2009: GBP360)
 
* New Casino players 12,289, up 26 percent on H1 2009
 
* Casino cost per acquisition: GBP86 (H1 2009: GBP89)
 
Poker revenue followed a general industry trend and was down 14 percent at GBP 400 000 and Bingo revenue declined 3 percent to GBP 100,000.
 
Management reported that the encouraging performance both in terms of player numbers and revenues reflects the effectiveness of marketing activities and supports the company's belief in the strength of the 32Red brand, reputation and operational expertise.
 
32Red continues to take steps to protect its Intellectual Property Rights and litigation with William Hill remains ongoing with a trial date set for October 2010.
 
On 15th February 2010, the Company announced the acquisition of the assets of two European-focused online casinos, Nedplay and Golden Lounge, both purchased for nominal consideration (see previous InfoPowa reports). Both casinos have been fully integrated and have generated GBP500,000 in revenues from the period since acquisition up to 30th June 2010. Players of both Nedplay and Golden Lounge have responded well to direct marketing and the company is assessing the marketability of both brands going forward.
 
The group chief executive, Ed Ware, commented: "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.
 
"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. While the focus remains in the UK, the Board continues to monitor regulatory developments in Europe and the rest of the world with a view to expanding into new markets should attractive opportunities arise.'



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