32Red tables 33% casino revenue rise
Gibraltar-licensed company says UK is main focus, but keeps an eye on European regulation
32Red will focus primarily on the UK but keep a close watch on European regulated markets in the next year after seeing its casino revenue rise by 33% in 2010.
Jon Hale, 32Red finance director, told eGaming Review he was in buoyant mood over the company’s latest trading update, which saw the business defy challenging economic conditions to boost its revenue and player base over the last year. “It is doubly pleasing to see we’re producing 33% growth year-on-year when consumers are beginning to feel the force of government cuts.
“How taxes will affect play over the next 12 months is difficult to assess, and I do not want to be too bullish, but I am confident of two-figure growth in the next year.”
But Hale admitted the company is prepared to look beyond the British market as the industry continues to develop and expand into new territories. “We will continue to focus on our core brand (32Red casino) and our core market (UK) and keep a close eye on regulation in other territories, whether in Europe or other jurisdictions.
“It is important that whatever we consider is viable and we are looking at the problems others have had in France “ we will be looking at tax regimes carefully before moving into that area.”
In a trading update released today, 32Red revealed its total revenue has risen to £16.9m compared to £12.8m in 2009, £14.8m from its flagship online casino. One of the main contributing factors is improved customer retention, with active casino players rising by 23% and casino player yield per player rising £21 to £479.
“Player retention is testament to the strength of our brand in the UK and in Europe,” said Hale, who believes the rising cost of customer recruitment (up £24 per player to £115) is worthwhile considering the yield per player.
“We have a reputation for delivering excellent customer service and if we deliver that on a constant level then customers will return. Customers come and go but eventually a lot of them come back to 32red.
“The increase in new players is also something we’re focusing on quite heavily, as long as there are still good marketing opportunities in the UK with sponsorship and online advertising as well as the offline side,” he added.
And while the signs from 2010 are promising, Hale is keen not to get too carried away before competitors have released their results. “It’ll be interesting to see how our peers do “ our figures are pleasing in a tough economic climate but we need to put that in perspective against our competitors when they release their results,” he said.