32Red Q3 revenues up 23%
Operator gives trading update as it publishes its full interim results for H1 2014 showing revenue and profit growth
32Red revealed gross gaming revenues (GGR) for the first 12 weeks of Q3 rose 23% year-on-year in a trading update this morning with the firm continuing its aggressive acquisition marketing drive.
The performance came on the back of a 19% increase in GGR to £22.6m and a 21% rise in EBITDA to £2.3m during H1, a period the company released more information on today, with casino acquisitions up 35% in the first six months to 23,566.
The rise which was partly attributed to an increase in casino marketing spend, which rose from £2.78m in H1 2013 to £4.24m this year to represent 21% of total GGR.
Casino remained the major revenue generator with a 20% rise in active casino players having contributed towards 21% increase in casino GGR to £20.4m, or 95% of total revenues.
These numbers are expected to be boosted further in H2 after 32Red acquired the 60,000-strong British customer database of casino operator Go Wild earlier this month.
Revenues generated by its mobile casino also continued its upward trajectory having grown by 124%, contributing a total of 32% to total casino sales.
But the operator conceded its Italy-facing business remained “a work in progress” despite having more than doubled in size from £0.46m in H1 2013 to £1.05m for the first six months of this year.
The firm said it expected a boost in its Italian operations following a number of major suppliers agreeing to halt their supply to Italy’s black market operators, which when fully enacted will see the company increase its thus far “limited marketing investment” in the country.
No figures were given for its Kambi Sports Solutions-powered 32Red sportsbook due to its release at the end of the period in June, however, early signs were said to be encouraging with the operator concentrating on the cross-sell into casino.
“We are firing on all cylinders and continuing to change the business for the better, especially in and around our marketing capabilities,” Ed Ware (pictured), 32Red CEO told eGaming Review. “There is more to come and my confidence is high with regards what the team can deliver,” he added.
The statement also revealed 32Red contributed £150,000 toward the legal costs of the Gibraltar Gaming and Betting Association’s on-going legal challenge to Great Britain’s looming Point of Consumption regulatory regime which, if enacted, would impact its British-focused business.
32Red’s share price was down 0.25p to 54p after early morning trading.