Online gaming operator 32Red has reacted with bemusement over the ‘sharp fall’ in its share price in recent weeks on the back of another year of record revenues. The operator suggests that it has suffered because other gambling firms have also seen their shares drop, but that was as a result of the UK Budget imposing greater taxes on retail betting rather than any sector that 32Red is involved in.
In a trading update, the firm said: “The Company can confirm that trading in recent weeks has strengthened further with Gross Gaming Revenues up 19% in the first 24 days in March against the corresponding period, taking the cumulative year-to-date increase to 8% as at 24 March 2014.
“The UK Government’s proposed introduction of a Point of Consumption Tax from the end of 2014 was again referenced in the Budget supplementary papers on Wednesday 19th March, although nothing new of substance was announced. The company continues to work with the Gibraltar Betting and Gaming Association to ensure that the industry concerns are voiced and understood by the UK Government and other stakeholders. The new announcements in the Budget regarding increased Fixed Odds Betting Terminal duties and levy collection do not impact the company.
The Board remains confident in the prospects for the business and in meeting its financial expectations for the year.”