Marketing step-up pays off for 32Red in 2014

A step-up in marketing investment, aimed at driving top line metric growth has led to 32Red announcing a fifth year of consecutive growth, as the Gibraltar operator announced its final results for 2014

32Red recorded a 25% increase in net gaming revenues of £32 million (FY 2013: 24.8 million), the increase in revenue transferred to a strong 2014 EBITDA performance of £5.4 million (FY 2013: £3.8 million).

The operator was able to clear a profit (before taxation) of £3.4 million (FY 2013: £2.3 million), 32Red senior management was able to announce a 2014 dividend of £2.4 per share

The operator highlighted that 2014 performance had been driven by increased player activity, which saw 32Red Casino players up 15% to + 82,000. 32RED was able to increase average casino player yield to £510 (2013: £485)

New marketing campaigns had proved to be effective for the operator, as it saw a 17% increase in new players to 44,300 (2013: 38,000). New player acquisition was supported with improved product engagement which saw Mobile revenues up 89% on 2013, representing 32% of total casino revenues (2013: 21%)

Looking forward, 32Red senior management outlined that 2015 would be another breakthrough year for the business as it looked to launch a competitive sport betting offering. Furthermore 32Red had will look to optimise its 2014 acquisition of GO Wild UK and marketing partnerships.

Commenting on the results, Ed Ware, Chief Executive Officer, said:

“32Red has achieved another excellent performance and continues to go from strength to strength. Our increased marketing investment during the period has proved very successful and driven the Company to its fifth consecutive year of revenue and profit growth.

The successful integration of Go Wild UK demonstrates our ability to source and integrate earnings enhancing acquisitions, which build upon our second to none customer service offering. 32Red is a highly cash generative business with a strong balance sheet and I believe there are significant growth opportunities that we are well-placed to take advantage of in the market.

Despite the recent introduction of a new UK regulatory environment, we have achieved a strong start to the new financial year and I am confident in our ability to continue to grow the business for the long term and look forward to the future with confidence.”

32Red Plc 2014 Performance Overview