Marketing shake-up drives 32Red half-year revenues up 19%
Casino-focused operator feels benefits of sharpened marketing strategy while Italy revenues more than double
32Red’s decision to overhaul its marketing strategy appears to be paying dividends after the operator revealed H1 2014 gross gaming revenues (GGR) rose 19% year-on-year to a record £22.6m.
The operator’s flagship casino was once again its main growth generator with the vertical posting GGR of £21.7m, up 21% on the £17.9m accumulated during the first six months of 2013.
32Red’s active casino players rose by 20% during H1 to 50,890, albeit at a higher cost per acquisition of £180, up 13% on H1 2013. However, despite the increase in players, average yield per casino customer nudged up slightly from £398 to £400.
The improved player numbers come after 32Red last year brought back Matthew Booth as commercial director to lead a more targeted marketing strategy, while in February it appointed media buying strategists M.i. Media to optimise a £6m UK marketing push.
32Red’s mobile penetration also grew with a third (32%) of casino revenues now derived from a mobile device, up from 17% in 2013.
One negative for 32Red was the performance ‘other’ products with GGR down 24% to £0.8m, however, a boost is expected in H2 with the operator having launched its Kambi-powered sportsbook in May, which the company noted had shown “encouraging” signs.
In Italy, meanwhile, the company continues to make inroads with H1 GGR up 130% albeit from a low base to £1.05m and active players rising to 5,793 from 1,887.
In contrast to the UK, the operator said it had adopted a more cautious marketing approach in Italy as it waits for the Italian regulator’s stricter grey market policies to come into effect at the end of the year.
32Red also reported GGR for the first 21 days of H2 was up 45% on the corresponding period last year.
“32Red’s revenue growth is roaring away very nicely,” said Numis analyst Ivor Jones while reiterating its ‘buy’ recommendation. “Marketing efficiency has improved sharply, as promised, and we expect revenue gains to be reinvested in top line growth,” he added.
32Red’s share price was up 1.25p to 53p after early morning trading.