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Growth at 32Red
32Red management had good cause for celebration this week; the company delivered a set of annual results that showed solid growth, and both management and casino received top awards from a major Internet gambling information portal.
The company's trading update for the year ended December 31, 2008 showed growth of total gaming revenue by 27 percent year-on-year to GBP13 million, with online casino operations up by 30 percent, delivering a gross win of GBP 11.7 million.
"The strong year-on-year growth in casino revenues has been driven by both increased active player numbers, up 15 percent, and an improved yield per player of GBP 536, up 13 percent," management reported.
"Performance for the year ended 31 December 2008 is expected to be in line with market expectations at PBT level, although ahead of expectations at EBITDA level."
Bank debt at the end of the year was GBP 250 000 in a report that included encouraging key indicator numbers:
* Gross win GBP13 million, up 27 percent on 2007
* Casino gross win GBP 11.7 million, up 30 percent on 2007
* Active casino customers 21 808, up 15 percent on 2007
* Casino player yield GBP536 (2007: GBP474)
* New casino players 15 567, up 7 percent on 2007
* Casino cost per acquisition GBP118 (2007: GBP137)
"Our good performance in 2008 puts 32Red firmly back on its growth path with revenues from our core business, the 32Red casino, growing strongly," said 32Red CEO Ed Ware. "We will continue to compete effectively against our larger peers through our existing platforms and the addition of new products to the 32Red portfolio including financial spread betting, due to go live later this month."
Ware revealed that trading has been strong so far in 2009, with prospect of additional action when the company adds to its product portfolio by launching a financial spread betting platform later this (January) month.
Coinciding with the results announcement, 32Red was again awarded "Best Online Casino" by the player-influential Casinomeister online gambling information portal - the sixth consecutive year in which the operation has been given the accolade. Operations exec Pat Harrison was recognised as "Best Online Casino Manager" for the second year in succession.
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