SBC News Voice of the Sports Betting Industry
Governance of 32Red Plc has cited strong organic growth combined with the positive impact of its acquisition of online casino brand Roxy Palace as the drivers for its full year record revenues results
Issuing the market a FY 2015 trading update, 32Red Plc reported that it gained significant growth on all its top-line metrics. The operator would record 2015 group net gaming revenues of £48.6 million up 51% on 2014 performance and beating the company’s expected guidance.
Primary product 32Red Casino posted £39 million in net gaming revenues, up 34% on 2014 £29 million,
The operator detailed that its concentrated effort on marketing ROI had proved successful, accelerating the firm’s organic growth on core products.
Furthermore 32Red was able to successfully integrate Microgaming legacy online casino Roxy Palace to its operations. The acquisition of Roxy Palace would contribute instant revenues of £5 million to 32Red 2015 performance.
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.”
