32Red opens door to third-party content with new Microgaming deal

32Red has agreed a new “flexible” deal with long-term platform and content supplier Microgaming, enabling the firm to incorporate casino content from other providers for the very first time.

As part of its interim results announcement this morning, which saw the operator confirm its previously reported 63% rise in H1 net gaming revenues to £30.4m, the firm said the deal would help it to develop the business further, while 32Red also revealed it had extended its agreement with ITV for exclusive branded content.

The Microgaming contract will run for five years from this November and, as part of the three-year ITV deal, will see the supplier provide 32Red with games related to popular TV shows fronted by TV presenting duo Ant & Dec.

Microgaming will supply 32Red with a new version of its I’m A Celebrity… Get Me Out Of Here! slot and a brand new Ant & Dec’s Saturday Night Takeaway game due to be released in Q1 2017.

32Red CEO Ed Ware said he was happy to have extended its deal with Microgaming.

“We have enjoyed a long and strong partnership with one of the world leaders in digital gaming expertise and are very excited to have strengthened our relationship in a way that provides 32Red with further opportunities to invest in and develop our business,” Ware said.

32Red also released its full H1 results this morning and in addition to revenues revealed EBITDA had risen to £4.5m during the half-year, a 258% rise from the £1.2m the operator posted in H1 2015.

Roxy Palace, which the operator acquired in July 2015, contributed £5.8m to total NGR during the period. The brand will receive a new responsive website in the second half of the year and increase its marketing expenditure.

32Red is also continuing with its football sponsorship strategy, securing a 12-month deal to advertise its sportsbook around live sport on Sky Sports, including a number of half-time adverts in live Premier League football matches.

Jane Anscombe, analyst at Edison Investment Research, said the operator “punches above its weight” in the UK online casino market.

“Management has adopted a more aggressive stance since mid-2015, both in terms of marketing and with the highly accretive £8.4m Roxy Palace acquisition,” said Anscombe.

“Interims show H116 EBITDA rising to £4.5m (H115: £1.2m) and we initiate with forecast EPS more than doubling in 2016 and growing by over 65% between 2016 and 2018.”

32Red’s share price was up approximately 6% to 140p at the time of writing.