32Red Plc
31 January 2008
32Red Plc
('the Company')
Trading Update
32Red Plc, the award-winning online casino, poker and sportsbetting operator, is
pleased to provide an update on trading for the year ended 31 December 2007.
Casino and Poker
The 32Red business as a whole has performed well during 2007 and has experienced
year-on-year growth in both turnover and the number of active players during the
year, principally led by a strong casino performance. The 32Red casino business
has seen revenues increase by 7.6% following a 26% increase in active players.
The 32Red poker business enjoyed more active players than in the previous period
but experienced a reduced yield per player, in line with the industry as a
whole.
Trading for the year ended 31 December 2007 is expected to be in line with
management expectations. 32Red intends to expand its European profile in 2008
and will shortly launch a French Language Casino service as the first of a
number of entries into targeted European territories. The move into France
follows the launch of the 32Red mobile casino earlier this month and represents
the first stage in a roll out of the core 32Red products and services.
32Red Key Performance Indicators*:
• Gross Win £10.2m, up 5.6% on 2006
- Casino Gross Win £9.0m, up 7.6% on 2006
- Poker Gross Win £1.2m, down 7.3% on 2006
• Active customers 33,745, up 17.0% on 2006
- Casino active players 18,992, up 26.6% on 2006
- Poker active players 14,753, up 6.6% on 2006
• Player yield
- Casino player yield £474 (2006: £557)
- Poker player yield £82 (2006: £95)
• New customers 25,640 up 14.3% on 2006
- New Casino players 14,568, up 19.3% on 2006
- New Poker players 11,054, up 8.2% on 2006
• Cost per Acquisition (inclusive of affiliate costs)
- Casino & poker cost per acquisition £87 (2006: £114)
- Casino cost per acquisition £137 (2006: £184)
- Poker cost per acquisition £22 (2006: £29)
Sportsbetting
Shortly after the relocation of the Betdirect business from Liverpool to
Gibraltar in July 2007, the Company accepted an offer of £5.75m from Stan James
(Gibraltar) Ltd for the Betdirect brand, customer database and certain business
assets. The sale was completed successfully on 10 December 2007. 32Red has an
agreement with Stan James for the provision of a white label Sportsbetting
service.
Bingo
32Red will shortly enter the Bingo market with 32RedBingo.com. Due to launch in
early February, the Company aims to take a share of the burgeoning online bingo
market, initially in the UK.
Asia Pacific Region
32Red continues to actively investigate commercial opportunities in this region
and will provide an update in due course.
Commenting on the performance, Ed Ware, CEO said:
' Following the sale of Betdirect in October 2007, the Group returns immediately
to a cash generative position. Management focus is now 100% on the core
successful 32Red brand. The launch of new products and new language services
herald the start of 32Red's next phase of growth'.
'I am delighted that 32Red has again been awarded Best Casino by Industry
watchdog and Player Advocate Casinomeister this month. As the industry's most
prestigious and independent award, we take encouragement that 32Red continues to
set service standards in a competitive industry.''
Trading Update
We are pleased with trading in the first few weeks of 2008 with strong growth
over 2007 being experienced in all areas of the casino and poker room. The Board
looks forward to a refreshed and re-focused 2008 for 32Red.
31 January 2008
*KPI's are stated in respect of the ongoing 32Red businesses and excludes
figures from Betdirect casino and poker operations.
Enquiries
32Red Plc 00 35 049 396
Ed Ware, CEO
Jon Hale, Finance Director
Numis Securities Limited +44 (0) 20 7260 1000
Chris Wilkinson
Lee Aston
Collegehill +44 (0) 20 7 457 2020
Matthew Smallwood
This information is provided by RNS
The company news service from the London Stock Exchange
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