Shares in online gaming operator 32Red rose by more than 13 per cent in London this morning after the company posted record revenue for 2014 and a fifth consecutive year of double digit growth.
Total net gaming revenue (NGR) increased 26 per cent to £32.1m during the year, with casino representing 91 per cent of the total with £29.3m, up 27 per cent year-on-year.
2014 Net Gaming Revenue
| British Pounds (£) | 2013 | 2014 | |
| Casino | 23.1m | 29.3m | |
| Other Products | 1.6m | 1.7m | |
| Italy | 0.6m | 1.1m | |
| TOTAL | 25.4m | 32.1m |
32Red said that the company’s overall performance continues to be led by the ongoing growth in the 32Red Casino and the increased investment in marketing, which has resulted in 17 per cent growth in new players to 44,385 and a 15 per cent rise in total active players to 82,155.
Gross gaming yield per active player was up 5 per cent to £510, while cost per acquisition climbed 18 per cent to £184.
With an increased focus on mobile, the channel saw revenue rise 89 per cent versus the previous year and now accounts for 32 per cent of total casino revenue, compared to 21 per cent a year ago. Over one half of all new players are now recruited via smartphone and tablet devices.
Other products, including sports betting, contributed NGR of £1.7m for the year, an increase of 5 per cent year-on-year, while NGR from casino operations in Italy rose 74 per cent to £1.1m.
32Red said that the growth in Italy was satisfactory given its decision to limit marketing spend ahead of the anticipated withdrawal of unregulated operators from the market with effect from the end of 2014.
As part of an increased commitment to marketing in Italy in 2015, the company’s new series of television adverts began airing earlier this month featuring one of Italy’s top comics.
32Red CEO Ed Ware said: “We performed well throughout the year with an accelerating performance in the second half following increased investment in our business. Our marketing and operations have never been in better shape and we are excited by the opportunities for 32Red to further develop this year both within and outside the UK market.”
The company said that early trading in 2015 has been strong across its products, with revenue for the first twenty days in January up 31 per cent on the corresponding period in 2014.
32Red added that it was too early to gauge the lasting effects of the new licensing regime on the UK remote gaming market which came into force last November. It noted however that there were fewer brands legally accessing the UK marketplace, and that its revenue for the month of December reached record levels.
Shares in 32Red plc (Co. Data) (AIM:TTR) gained 13.78 per cent to 46.65 pence per share in early trading in London this morning following the announcement.