Customer boost sees 32Red revenues rise 22%

32Red this morning posted a 22% year-on-year rise in H1 net gaming revenues (NGR) having seen a substantial rise in active players following increased marketing spend and improved cross-sell success.

Total NGR for the six months ended 30 June was £18.6m, £17.9m of which was derived from its flagship casino business, up 23% on the corresponding figure in 2014.

The main driver of growth was a 22% boost in active casino numbers, a rise that failed to materially dilute yield per player, which only dipped 5% to £380. New casino players were up 12% to 26,400 although due to a more aggressive marketing strategy CPA increased from £180 to £197.

The Gibraltar-based operator’s Italy-facing division grew by 67% as NGR went from £0.5m to £0.9m. 32Red said it planned to increase marketing in Italy and introduce additional gaming products later this year.

Meanwhile mobile penetration also increased during the six-month period with 42% of casino revenues now derived through handheld devices, while other NGR remainded relatively flat at £0.7m.

According to 32Red chief executive Ed Ware, the growth witnessed in H1 was due to the operator’s continued focus on customer service, increased marketing spend and improved cross-sell techniques.

And 32Red’s H2 numbers look set to increase further with the additional revenues to be derived from last week’s £8.4m purchase of Roxy Palace – the operator said revenues for the first 20 days of the period were up 35% year-on-year.

“We recently announced the acquisition of the Roxy Palace business and I am delighted with initial trading and the integration progress,” Ware said.

“The combination of this earnings enhancing acquisition allied with our strong organic growth provides a strong platform for continued growth and we look forward to the future with confidence,” he added.

32Red’s share price was down 2p to 70.5p after early morning trading.