32Red H1 revenues soar 63%
Operator feels benefit of increased marketing, sportsbook growth and acquisition of Roxy Palace
32Red recorded a 63% year-on-year rise in net gaming revenues for the first half of the year, driven by a mixture of organic growth and a contribution from its recently acquired Roxy Palace business.
Net gaming revenue (NGR) reached ?30.4m for the six months ended 30 June 2016, a significant rise on the ?18.6m it posted the same period last year.
Increased marketing investment in the 32Red brand resulted in organic growth of 32%, while Roxy Palace, which the operator acquired in July 2015, contributed ?5.8m to total NGR during the period.
Mobile remained the fastest growing platform both in terms of new player recruitment and revenue, the latter grew by 45% year-on-year and represented 50% of total 32Red Casino revenues.
‘Other products’ – which is predominantly made up of the operator’s Kambi-powered sportsbook, saw revenues rise by 223%, albeit from a small base of ?0.7m to ?2.3m.
The company’s Italian NGR rose by 33% YoY in H1 to ?1.1m, and said it was examining ways to broaden its product offering in the market.
32Red CEO Ed Ware said he was pleased with the record revenue performance, particularly with its flagship casino product having competed against Euro 2016 in June.
“Our excellent growth was achieved despite a very active sports market towards the end of the period coinciding with the European football championships,” said Ware.
“This demonstrates the appeal of the 32Red brands and customer experience as well as the opportunities ahead for 32Red to deliver further growth as we exploit marketing opportunities,” he added.
“32Red is in excellent health with a number of exciting opportunities ahead. We have a focused strategy to deliver continued organic growth as well as potential acquisition opportunities and we continue to look to the future with confidence.”
The firm also gave an update on the first 27 days trading in H2, with revenues down 2% on the same period last year but stressed both wagering and active users were up by double-digits.
32Red rolled out a new front-end platform during the period, and also agreed a new shirt sponsorship deal with Leeds United.
32Red’s share price was down 2% to 137p at the time of writing.