Numbers come in for 32 Red

32 Red Plc, the casino and online pokies operator that is listed on the London Stock Exchange has released record revenue figures to the market. Despite difficult trading conditions caused by the global economic downturn, total revenue for the group is up 34% to £7.8m for the first 6 months of 2010 compared to the same period last year.

Founded in 2002 by CEO Ed Ware, the group haven’t had the easiest time over the last couple of years following the acquisition and subsequent divestment of Betdirect, the UK facing sportsbook. However, the numbers produced so far in 2010 for Ware and his team are certainly encouraging. Since the beginning of the year they have managed to acquire 12,000 new casino and pokies players, up 26% from last year. Interestingly enough they have managed to reduce the cost per acquisition, a key metric in the online gambling marketing environment to a record low of £86.

However, it’s not all good news across all of 32 Red ’s brands. Practically all of the growth has occurred in their flag ship casino product. Powered by Microgaming the 32 Red casino has seen the launch of a number of great pokie games this year, including Thuderstruck 2. Their poker has continued to struggle with revenue down 14% to £0.4m and whilst this may be alarming to investors this is more a reflection of the state of the online poker market as a whole, with a number of operators struggling to maintain volumes.

Despite this the outlook looks bright for 32 Red. Their outstanding bank debt has been repaid and as a consequence their balance sheet is in a much stronger position than it has been in previous years. Profits that had previously gone towards financing their debt position will now be available for acquisition and growth plans.

Whilst they may struggle to compete with the advertising dollar of some of the bigger industry giants, 32 Red certainly has the ability to grab a market share in new geographic markets. Ware himself has stated that the will keep an eye on the ever changing regulatory position in the various global markets “with a view to expanding into new markets should attractive opportunities arise.”

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Source: OnlinePokiesClub.com