32Red awarded Italian licence
Operator makes announcement in preliminary results statement, which also reveals record revenues.
AIM-listed operator 32Red has been awarded an Italian egaming licence, the company revealed today in its preliminary results statement for the 12 months ended 31 December 2011.
Chief executive Ed Ware had revealed to eGaming Review last November that the operator hoped to launch in the EU member state this year, and it explained in a statement today that “Work continues on our technical platform in order to be ready to go live in the first half of 2012.”
The company follows PKR and Betsson in receiving an Italian licence in recent months, with the former having launched its dot.it poker offering in February.
Revenues for the period once again reached record levels, increasing 48% year-on-year to £25.03m compared to £16.95m in 2010.
This upward trend has continued in the early part of 2012, with a 69% revenue increase compared to the corresponding period last year.
Profit before tax has also increased, more than doubling to £2.12m, while 32Red also saw a 47% year-on-year increase in active depositing casino players.
Last month also saw the company receive £70,000 in costs following the resolution of its trademark dispute with William Hill over the London-listed operator’s 32Vegas brand, while damages from the case will be determined early next year.
Ware said in a statement to the London Stock Exchange: “While we remain focused on the United Kingdom, we also look forward to expanding our profile in the regulated market in Italy where we intend to utilise our core skills and apply our business philosophy to establish the 32Red brand.”
Analyst Ivor Jones of Numis Securities retained his firm’s ‘Buy’ recommendation, saying “32Red’s Italian job starts in 2H12 and we expect the potential payoff to become apparent within 12 months.”
He noted that “The small size of the company today means that relatively modest success in Italy would make a material contribution to profits.”