32Red revenue down 11% at H1 due to
32Red's revenues for the six month period to the end of June have fallen by 11% on the same period last year, the company's half year results revealed this morning.
32RED’S REVENUE for the six month period to the end of June fell 11% on the same period last year, the company’s half year results revealed this morning.
The British operator’s interim results showed overall revenues having dipped 11.2% to £5.8m, from £6.4m at the same point in 2008.
32Red attributed the fall to “the challenging economic environment faced by the UK and the rest of Europe during the first half of the year”.
This was despite a rise in active players on its mainstay casino product in the first six months of 23% on the same period in 2008 to 14,490 and a rise in the number of new casino players in the first six months of 19% to 9,733.
Chief executive Ed Ware said: “Despite the global recession, 32Red has managed to grow its new casino players by a record 9,733, driven in part by our new television advertising campaign that has helped deliver a lower cost of customer acquisition. 32Red is well positioned to take advantage of any improvement in market conditions.”
Highlights during the period included 32Red being accepted by the PayPal banking service, making it one of only a handful of online gaming operators able to offer this payment option, and the launch of 32Red Rummy in July and 32Red Spreadbet in March.
32Red also signed a sponsorship deal with Championship football team Swansea City until 2011.
The company predicted savings on marketing and operations of circa £400,000 per annum following investment in customer-facing and back office technology.