32Red revenues up 26% in 2014
Gibraltar-based operator posts fifth successive year of double-digit revenue growth
32Red has “never been in better shape” according to its chief executive Ed Ware (pictured), as the company announced a 26% year-on-year increase in net gaming revenues for 2014 with its flagship casino posting annual growth of 27%.
In a trading update released this morning, the predominantly UK-facing operator said total NGR for the year ended 31 December was £32.1m, up on the £25.4m recorded across 2013, with casino contributing £30.4m.
The firm was boosted by December’s revenues hitting “record levels” and increased mobile penetration throughout the year, with revenues from handheld devices up 89% on 2013 representing 32% of total NGR.
Revenues from other products – including its recently launched sportsbook 32Red Sport – rose 5% to £1.7m.
The firm also saw its Italy-facing business record healthy growth with NGR up 74% to £1.1m, despite limited investment in marketing activity across the period.
32Red recently launched a new TV advertising campaign in the country after the local regulator took steps to improve operating conditions by weeding out unlicensed operators.
The firm, which some expected to be negatively impacted by the recent implementation of the UK Point of Consumption tax and licensing regime, also reported a strong start to 2015 with revenues for the first 20 days in January up 31% on the corresponding period in 2014.
The operator said it was “too early to gauge the lasting effects” of the new regime but noted there were “fewer brands legally accessing the UK marketplace”.
Ware said increased investment in the business, which included the September purchase of casino operator Go Wild’s UK customer database, saw the firm’s performance improve steadily as the year wore on and was confident regarding its prospects in 2015.
“Our marketing and operations have never been in better shape and we are excited by the opportunities for 32Red to further develop this year both within and outside the UK market,” Ware said.
32Red’s share price was up 5p to 46.5p after early morning trading.