UK Online Gambling Group 32Red's Profits Up
Published: Saturday, March 04, 2006 Online-Casinos.com
UK ONLINE GAMBLING GROUP 32RED'S PROFITS UP
Upbeat man at the top if UK online gambling group 32Red says there is "plenty of growth" left in the casino and poker market
32Red, the online casino and online poker firm owned by Trafalgar reported positive business results this week, showing increases in pre-tax profits and revenues flowing from a customer base that is mainly resident in Britain and Ireland
32Red chief executive Ed Ware commented that there was plenty of growth left in these key markets, which delivered 82 percent of business. The rest of 32 Red's action came from online casino and online poker players in Scandinavian countries and the United States.
The company's pre-tax profits rose to GBP 1.3 million, up GBP 200 000 on the previous year. Turnover rose from GBP 1.97million to GBP 3.48 million and total active players increased more than 100 percent to 17 587, with new players rising to 14,451.
Ed Ware said that most player came from the United company and Ireland, and there remains good potential for further growth: "In the UK there remains plenty to go for," he said. "PartyPoker and 888 Casino have been acting as icebreakers and we are going in after them and picking up customers."
The company was looking at opportunities to enter the sports-betting market, Ed Ware revealed, with all options being considered from white-label deals to possible acquisitions.
"The highest-rated online gambling company in the sector is Sportingbet because it has the entire portfolio of products. We have casino and poker, and clearly we would be interested in adding a sportsbook," he said.
The 32Red CEO referred to last September's damaging Party Gaming pessimism on online poker, saying that this had affected investor sentiment on the industry following 32Red's IPO that month.
"While what happened last September was painful, the fact that PartyGaming has bounced back and come back stronger has given the City of London more confidence in the market" he said.
Highlights from the 32 Red report included:
- Gaming revenues up 67 percent to GBP 9.77 million
- Casino revenues up 57 percent to GBP 8.94 million
- Poker revenues up 339 percent to GBP 830 000
- Profit before interest and tax up 82 percent to GBP 2.04 million
- Basic earnings per share up 16 percent to 2.76 pence
- Total active players increased by 102 percent to 17 587
- Total new players recruited rose by 91 percent to 14 451
- Annual yield per casino player of GBP 843
- Cost per acquisition of real money players of GBP 147
- Japanese language 32Red casino launched
- Investment in new data center
- Highly recommended by popular online casino gambling portal Online-Casinos.com
- Voted 'Best Online Casino' 2005 by Casino Meister for 3 consecutive year
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