Casino performance continues to drive 32Red growth
Group revenues up 50% for the period " dot.it offering to launch in H2 2012.
Year-on-year casino revenue growth of 52% has seen 32Red report record half-year revenues for the sixth successive period, the company announced this morning in a trading update for the six months ending 30 June.
The group posted a 50% year-on-year rise in revenues for the period, up from £11m to £16.5m, driven by growth in 32Red’s core casino business. Active customer numbers rose 81% compared to the first half of 2011 with 31,722 actives currently playing on the site. Cost per acquisition for casino customers dropped marginally, down 4% from £173 to £166.
32Red added that revenues for the first 20 days of the second half of this year were up 28% on the equivalent period in 2011 and, coupled with the strong performance in the first half of the year, the group is now expected to deliver revenues ahead of current expectations for the full year.
This will be aided by its launch in Italy, where it obtained a licence in March this year after originally announcing plans to enter the market “ its first outside of the UK “ in November 2011.
Ed Ware said that increased investment in marketing in its core UK market had been key to 32Red’s growth: “The continued growth in revenues, particularly in light of strong comparatives, is testament to the strong new player recruitment resulting from more investment in our main market, the UK. We aim to continue in this regard as well as taking our first measured steps in entering the Italian market.
“We look forward to launching 32Red.it during the second half of the year and welcome the recent decision by the Italian authorities to commence the procedures to approve online slots games from December 2012 onwards,” Ware explained.
The six-month period also saw 32Red win a second trademark dispute, with Californian company Baysound ordered to hand over use of its 32x.com domain to the company by the World Intellectual Property Organisation. It followed a judge’s rejection of William Hill’s appeal against the injunction granted to 32Red against Hills’ 32Vegas casino site in January, which saw Hills ordered to pay costs of £70,000, and damages and costs to be decided in court early in 2013.
Ivor Jones of Numis Securities retained his firm’s ‘Buy’ recommendation, explaining:
“32Red continues to go from strength to strength, trading is excellent, the launch in Italy is imminent and we expect that the commercial damages to be received from William Hill will be determined within the next 12 months.
“Investing in 32Red is not only about the long-term, it is clear that this management team has an excellent short game too,” Jones concluded.