32Red posts 28% full-year revenue growth
Casino-focused operator’s Italy-facing business moves into profit for first time as firm continues upward trajectory
32Red this morning posted a 28% increase in full-year revenues, with the casino-focused operator also starting the year in similar fashion with like-for-like revenues to 30 January rising 21%.
The firm reported net gaming revenues for the 12 months to 31 December 2016 were £62.3m, compared to the £48.7m banked in 2015, with the figure boosted by a full-year contribution from its Roxy Palace brand.
Stripping out Roxy Palace, which was acquired in July 2015, the firm recorded organic growth of 19% but said from this point on would report combined casino revenues across all brands, which in 2016 amounted to £58.5m – or 94% of total NGR.
The firm’s ‘other products’, which consists mainly of its Kambi-powered sportsbook revenues, were up 60% to £3.8m, with the firm describing 32Red Sport as “an increasingly important customer acquisition and retention channel”.
Although no figures were given, the firm revealed its Italy-facing business had moved into profit for the first time, which CEO Ed Ware had previously said would be a landmark moment for the firm.
For the first time, 32Red also revealed its regulated/unregulated revenues spilt, with its percentage of regulated revenues falling slightly from 80% in 2015 to 77% last year, which can be attributed to its more geographically diverse Roxy Palace business.
While 32Red didn’t report profits toady, analyst firm Edison said it expected the firm would have delivered EBITDA in the region of £10.5m, roughly double the amount posted in 2015.
The growing numbers follow a year in which the firm launched a new front-end platform, ramped-up marketing spend with major sponsorship deals including Leeds United and the King George, and completed the integration of the Roxy Palace business.
“32Red experienced another hugely successful year with profits and revenues breaking previous records, driven by excellent growth in our core casino products,” Ware said today.
“We have continued to deliver progress against our clear growth strategy underpinned by the strength of the 32Red brand, effective return on investment-driven marketing and an enhanced customer proposition.
“The key strategically important contracts signed during the second half of 2016 will help the company to deliver its stated growth strategy and the Board remains confident of delivering continued progress in 2017.”
32Red’s share price nudged up slightly this morning to 134.75p at the time of writing.