Gibraltar-licensed gambling operator 32Red reported its financial results for the first half of the year ended June 30, 2015. Total net gaming revenue for the period amounted to £18.6 million, up 22% as compared to the £15.2 million posted for the first half of 2014.
Underlying net gaming revenue totaled £17.7 million and proceeds from the company’s Italian operations totaled £0.9 million. The gambling operator revealed that revenue from taxed and regulated markets accounted for 85% of the overall revenue.
Furthermore, mobile casino operations continued growing during the reported period and represented 42% of the total proceeds posted for this year’s first half. The number of active casino players also increased 22% to 62,214.
Underlying EBITDA before the recently introduced Point of Consumption tax amounted to £4.2 million, up 57% from the £2.7 million reported for the same period a year ago. The company pointed out that it had contributed the total amount of £2 million in Point of Consumption tax. Thus, EBITDA after the said tax was £2.2 million. Overall EBITDA without the operator’s investment in Italy totaled £1.2 million, representing a 45% drop as compared to the £2.3 million posted for the first half of 2014.
Commenting on his company’s performance, 32Red Chief Executive Officer Ed Ware said that its revenue increased the record 22% due to the “strong brand, leading customer offer and return on investment-driven marketing expertise.” The executive also pointed out that they believe the operator would meet the initial expectations for the full-year financial results as it would keep on providing customers with exciting and well-developed product offering.
In July, 32Red announced the acquisition of online casino Roxy Palace for the amount of £8.4 million.
It paid £2 million in cash and issued 10,000,000 new ordinary shares. Mr. Ware said that the online casino business is an excellent fit and “a strong complimentary brand” that would most definitely create numerous opportunities for revenue growth. In addition, both 32Red’s existing and new shareholders are expected to benefit from the transaction.
Since acquiring the online casino brand, which offers more than 500 games, including roulette, blackjack, video poker, it has generated the amount of £2.5 million in net gaming revenue.
