32Red full-year profits double as Kindred takeover nears

32Red full-year profits doubled to £10.6m in 2016, with double-digit revenue growth in both the operator’s sports betting and flagship casino business coming as the firm prepares to be acquired by the Kindred Group.

EBITDA for the 12 months ended 31 December 2016 increased 102% year-on-year from the £5.2m figure it recorded the previous year, while net gaming revenue (NGR) was up 28% to £62.3m.

The operator’s revenue growth included a 26% year-on-year rise in casino NGR to £58.5m and a 60% increase from ‘other products’, which is predominantly made up of the company’s Kambi-powered 32RedSport business.

Revenues were also boosted by the first full-year contribution from its Roxy Casino brand which, following its acquisition by 32Red in July 2015, recorded £10.6m in NGR last year.

32Red also revealed its Italy-facing business had moved into profitability for the first time after revenues increased from £1.7m in 2015 to £2.3m last year.

“In 2016 the Group delivered continued strategic progress across the business with outstanding growth on mobile, further successful product enhancements and highly successful marketing investment,” 32Red CEO, Ed Ware, said.

“Underpinned by the strength of the brand, 32Red has an exceptional platform to drive continued growth across the business and increase market share both in the UK and Italy.”

32Red is currently the subject of a takeover offer from Kindred Group which will see the Unibet-owner acquire the entirety of the 32Red as part of a £176m deal.

“The recommended offer for the business by Kindred Group plc post the Period end reflects the strength of the 32Red brand as well as its significant growth opportunities as a casino focused operator,” Ware added.

“We are confident that Kindred would provide the right fit both operationally and culturally to continue the Group’s growth.”

32Red’s share price was up 0.39% to 194.75p at the time of writing.