Third successive year of record 32Red revenues

Gibraltar-based casino operator 32Red has seen its revenues rise for the third successive year, the company has announced in its trading update for the year ended 31 December 2012.

Revenues from its core casino offering came in at £30m, up 28.8% year-on-year and nearly double the £15.7m recorded in 2010, while revenues from other products rose 23.5% year-on-year, resulting in overall revenue growth of 28% for the year.

The number of active players on the site has also increased significantly, climbing 44.5% to 57,338, while the operator brought in more than 40,000 new players during the 12-month period.

Meanwhile, the early part of Q1 2013 has already seen improvement on what 32Red has described as “An exceptionally strong corresponding period in 2012 that benefitted from significant promotional activity,” with revenues rising 15% year-on-year across the first 21 days of the new year.

One contributing factor to this growth is 32Red’s increased activity in Italy, where it secured an operating licence in March 2012 and went live eight months later.

While initially only launching roulette, blackjack and video poker, the operator went live with a range of slots from software provider Prima Networks after securing an authorisation for the product last month.

Chief executive Ed Ware (pictured) said: “Initial trading from our Italian casino is encouraging and supports our confidence in the longer term opportunity.

“As ever, we continue to monitor other regulatory developments around the world.”

Ivor Jones, analyst with Numis, retained his firm’s ‘Buy’ recommendation in a note this morning, noting: “32Red continues to deliver excellent results in its core market, its venture in Italy appears to have started very well and it has a cash injection in prospect courtesy of the 32Vegas damages hearing.

The damages hearing began last year, after Hills’ appeal against an original copyright infringement ruling was rejected, and Ware said: “We are delighted that the Court of Appeal has categorically dismissed William Hill’s appeal. The success of our cross-appeal is also very satisfying.

“Quite correctly, the Court of Appeal’s judgment also supported the view that taking advantage of a well known brand such as 32Red is not acceptable,” added Ware, who also noted that “We are now focused on concluding this matter with William Hill and have already begun preparations for the inquiry into damages.”

Analyst Michael Campbell of Daniel Stewart also issued a ‘Buy’ recommendation, describing the operator’s Italian progress as “A promising start.”