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32Red Plc (TTR)

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Thursday 21 January, 2016

32Red Plc

Post Close Trading Update

RNS Number : 5103M
32Red Plc
21 January 2016
 

21 January 2016

32Red Plc

("32Red'' or ''the Company")

 

Post close Trading Update

 

Record revenue performance in 2015; full year EBITDA expected to be slightly ahead of expectations

32Red Plc, the award-winning remote gaming operator, is pleased to provide an update on its trading performance for the year ended 31 December 2015. 

2015 Summary

The Company has delivered record annual net gaming revenues in 2015, up 51% to £48.6m (2014: £32.1m). This very strong performance was driven by a combination of accelerated organic growth in our core business (+35% on 2014) and a contribution from the Roxy Palace business that was acquired on 14 July 2015.


Total Net Gaming Revenues


2015


2014


Var

32Red Casino

£39.3m

£29.3m

+34%

32Red Other Products

£2.4m

£1.7m

+42%

32Red Underlying Net Gaming Revenue

£41.7m

£31.0m

+35%

Italy - 32Red Net Gaming Revenue

£1.7m

£1.1m

+54%

Total 32Red Net Gaming Revenue

£43.4m

£32.1m

+35%

Roxy Palace Net Gaming Revenues

£5.2m

-


Total Net Gaming Revenue

£48.6m

£32.1m

+51%



32Red Casino
- The increased investment in marketing that is focused on our strict returns criteria, has accelerated organic revenue growth in the UK market. Our focus has remained on the development of mobile device gaming and as a result mobile revenues are up 71% on 2014, representing 44% of total 32Red casino revenues (2014: 32%).

Roxy Palace - The relocation of the acquired Roxy Palace business to Gibraltar and the integration of the operations was completed in December 2015, slightly ahead of schedule. Net Gaming Revenues have been in line with expectations during this integration phase and the Roxy Palace business will benefit from increased and more efficient marketing in the year ahead. This acquisition demonstrates the Company's ability to identify and deliver attractive acquisitions and we will continue to explore further value creating opportunities in 2016.

Italy - We have continued to make progress in Italy in what remains a competitive market. The potential rewards in Italy are significant and we are confident 32Red is in good shape to progress our operations and move towards break even during 2016.

Current Trading and Outlook - Early trading in 2016 has been strong across the Company's products with revenues for the first nineteen days in January up 27% on the corresponding period in 2015 and up 54% including contribution from Roxy Palace.

Commenting on the performance, Ed Ware, CEO of 32Red, said:

"I am delighted to report a record revenue performance for 32Red in 2015, despite significant regulatory and tax headwinds. This excellent outcome is a reflection of the strength of the 32Red business, our talented and dedicated team, as well as our first class marketing and appealing brands.

 

As a result of the strong organic growth delivered throughout the year as well as the smooth integration of the Roxy Palace business, the Company expects to report EBITDA slightly ahead of expectations for 2015 when it announces its preliminary results on Thursday 10 March 2016.

 

The acquisition of the Roxy Palace business in July was a perfect fit for us, complementing the strong organic growth at 32Red which has accelerated in direct response to increased and effective marketing investment in the year. Marketing expenditure will be increased again in 2016 and I expect to report further strong progress across the business.

 

Underpinned by our reputation for providing a first class customer experience and leading online gaming brands, 32Red is in excellent health and we are excited by the opportunities ahead."

 Enquiries:

32Red Plc

Tel:  +00 350 200 49396

Ed Ware, CEO


Jon Hale, CFO




Numis Securities Limited

Tel: +44 (0) 20 7260 1000

Michael Meade (Nominated Adviser) 


Chris Wilkinson (Corporate Broking)


Michael Burke (Corporate Broking)




Hudson Sandler

Tel: +44 (0) 207 796 4133

Alex Brennan

[email protected]

Bertie Berger


 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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