Second half revival helps 32Red

Leading Gibraltar-based virtual gaming operator 32Red has released its financial results for 2009 showing a two percent year-on-year decline in revenues to £12.752 million.

Despite an eleven percent year-on-year decline in revenues for the first half of the year to £5.839 million, business improved over the second half with 32Red revealing a five percent increase in revenues when compared to the period in 2008 to £6.913 million.

32Red stated that net gaming wins for the full twelve months were £12.75 million, which was marginally behind 2008’s figure, while gross profits dropped 14 percent year-on-year to just over £3.784 million.

“However, closer inspection of the results reveals two distinctly different performances during the first and second halves of 2009,” said David Fish, Chairman for 32Red.

“Second half revenues in 2009 represent a record high for a six-month trading period for the company and are in marked contrast to the trading performance delivered in the first half of the year when revenues declined by eleven percent against the same period in 2008.”

The online gaming operator stated that the strong recovery during the second half of the year was led by its 32Red.com domain, which grew revenues by 21 percent when compared to the first half of the year and by eleven percent over the corresponding period in 2008.

“Overall, it was an encouraging recovery and underlines the importance of the company’s flagship operation, 32Red.com, which remains crucial to the success of the overall business,” said Fish.

“Our continued efforts to improve operational effectiveness and optimising our marketing activities coupled with the withdrawal of the 32Vegas.com online casino website by William Hill on August 4, 2009 are, in the board’s view, significant factors in the improvement in 32Red’s performance over the second half of the year. The move by William Hill and the company’s return to strong growth fully supports the board’s commitment to taking action in order to protect 32Red’s valuable intellectual property.”