32Red, a global online casino operator, has recorded record net gaming revenues of £30.4m (€36.2m) for the first six months of the year, up 63 percent year-on-year.
[dropcap]I[/dropcap]n its post-close trading update, the company said the hike in revenues was the combined result of effective marketing spend for its organic business and revenues from its most recent acquisition, Roxy Palace.
Roxy – which was acquired by the company in July 2015 and migrated to its headquarters in Q4 2015 – pulled in £5.8m (€6.9m) in net revenues over the period. 32Red’s own-brand casino also exhibited strong growth, which was attributed to “accelerated returns-driven marketing investment”. In Italy – one of its key regions for growth – revenues were up 33 percent year-on-year, in line with the board’s expectations.
“Our excellent growth was achieved despite a very active sports market towards the end of the period coinciding with the European football championships,” said 32Red CEO Ed Ware.
“This demonstrates the appeal of the 32Red brands and customer experience as well as the opportunities ahead for 32Red to deliver further growth as we exploit marketing opportunities.”
32Red also pointed to the significance of mobile gaming, a channel that has seen the steepest rise in both revenues and player acquisition in recent months. According to the firm, this channel now accounts for approximately half of all the company’s gaming revenues.
We have a focused strategy to deliver continued organic growth as well as potential acquisition opportunities and we continue to look to the future with confidence.
Ware added: “32Red is in excellent health with a number of exciting opportunities ahead. We have a focused strategy to deliver continued organic growth as well as potential acquisition opportunities and we continue to look to the future with confidence.”
The second half of the year has so far seen a 21 percent hike in active users with like-for-like wagering up 33 percent, although a lower-than-expected casino gross win margin has put net gaming revenues two percent behind the previous year.
The company will release its interim results on 21 September.