BUSINESS

Sportech online heading for growth; Gala Interactive disappoints; 32Red record revenues

TAGs: 32Red, coral interactive, Gala Coral, gala interactive

sportech 32red galaSportech Group’s iGaming division is heading into the “growth phase” after 18 months in what it’s called “transition.” Results showed revenue slightly down for online operations from £4.3 million to £4.1 million with operating profit decreasing by £0.1 million to £1.4 million. Preliminary results for the entire group showed a revenue increase of 66% to £118.2 million and operating profit up by over £3 million to £20.5 million. 2011 was the first set of results to include the full impact of Sportech Racing’s integration, which raised £67.3 million in the year – £52.3 million more than it did in 2010. Management was pleased with the results, chief executive Ian Penrose admitting: “Our financial results for 2011 highlight the significant improvement in the financial position of Sportech. Whilst we are conscious of the ongoing economic uncertainties in our two principal markets of the UK and USA, we have started 2012 well, with trading for the first two months in line with management’s expectations.”

Gala Coral posted improved profits and turnover despite their online business continuing to suffer. Turnover hit £352.8 million for the first quarter to Jan. 13, 2012, an increase of 4% year-on-year as gross profit improved by 6% to £271.5 million. This was in stark contrast to online where profit dipped 7%. Gala Interactive saw drops in both gross win (down 13% to £15.3 million) and turnover (18% to £13.1 million). Coral Interactive performed better with amounts staked improving 1% to £206.4 million and gross win 3% more than last year at £81.5 million. Turnover decreased 3% to £7.7 million and these results were when Eurobet.com was still under its belt. How they need Rank to come up with the cash for their casinos – and quickly.

32Red announced record net gaming revenues on the same day it confirmed it’s been granted an Italian licence. Revenues for the year saw a 48% rise to £25.03 million as profit before tax increased 102% to £2.12 million. The release confirmed they’re “excited” to be awarded a remote gaming licence in Italy with the expectation they’ll go live in the first half of 2012. In terms of the current year, CEO Ed Ware said: “Performance in the first two months of 2012 has been strong and serves as further encouragement to continue to grow marketing investment in the business.”

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