BUSINESS

32Red Announce Record Profits For the Fourth Consecutive Year

TAGs: 32Red, financial results

32Red announce record profits for the fourth consecutive year, as the casino sector, in particular mobile casino, continues to be the jewel in the British firm’s crown.

There were a few changes in direction at 32Red during 2013, but they all seemed to fall into place quite nicely as the Gibraltar based online gaming operator managed to record an increase in annual revenues for the fourth consecutive year.

32red-trading-update

The outfit generated £38.8m in total revenue, a 21% increase from the £32.1m it earned in 2012, following on from record-breaking years of £16.9m in 2010 and £25m in 2011.

A statement from 32Red cited the casino sector as the main reason behind the growth as revenue in this neck of the woods jumped from £30m in 2012 to £35.6m in 2013, whilst ‘other products’ actually fell from  £2.1m in 2012 to £2m in 2013.

32Red’s KPIs showed the number of active players increase from 57,338 in 2012 to 71,266 in 2013, which is outstanding progress when you consider they had 28,585 back in 2010; but the number of new players did drop from 41,918 in 2012 to 38,033 in 2013, as did yield per active player which fell from £500 in 2012 to £485 in 2013.

One wonders if the decision to move away from Premier League sponsorship, into the lower league areas, and TV deals with Film4 and the Paul O’Grady shows were part of that reason?

The firm were quick to cite ‘improved focus on CRM, supplemented by increased marketing expenditure and new player recruitment in the second half of the year,’ as the main reason behind their success.

As seems to be bog standard with most online casinos these days, the 32Red mobile casino continued to flower with revenues up 136% on 2012. This increase was responsible for a third of all the sites new players.

It was also the first year for 32Red.it to display its numbers and total revenue was £1.3m. The press release made mention of ‘steady growth’ in the Italian market with H2 Revenues of £0.8m, up 84% on the first half of 2013 as customer awareness continues to improve.

The company also cast focus on the Italian’s unregulated operators, ‘We also hope to see a benefit from unregulated operators withdrawing from the market as the new rules are enforced.’

It has also been a great start to 2014, with Gross Win up 10% for the first two weeks of the year.

Ed Ware, CEO of 32Red, had this to say about his company’s performance.

“I am delighted to report a fourth successive year of double digit revenue growth. Our 32Red casino product continues to go from strength to strength and the 24% growth in active players is testament to our focus on delivering a second to none customer service across platforms.

“Trading momentum has continued into 2014 and I am confident that our recent step up in marketing investment, increased focus on CRM and the bolstering of our board leave us well placed to make further progress in the year.”

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