PR: 32Red Plc Preliminary results for 2010

[Casinomeister]

32Red Plc(“32Red” or “the Company”)

Preliminary results for the year ended 31 December 2010

32Red, the award-winning casino operator, today announces preliminary results for the year ended 31 December 2010

Key points:

2010 produced record Net Gaming Wins for the Company
Profit Before Taxation doubled
High Court victory in trade mark litigation dispute with William Hill
Smooth integration of acquired Nedplay and Golden Lounge casinos
Inaugural Final Dividend declared
Current trading very strong

Key financials and performance indicators

· Net Gaming Wins increased by 33% to £16.95m (2009: £12.75m)

· Like for Like (‘LFL’)* Casino Net Gaming Wins increased by 29% to £14.83m (2009: £11.54m)

· Casino brands acquired during the year contributed £0.86m Net Gaming Wins

· EBITDA increase by 90% to £1.65m (2009: £0.87m)

Profit before tax increased by 98% to £1.05m (2009: £0.53m)
EPS 1.50p (2009: 0.76p)
Final dividend of 0.5p per share (2009: nil)
· Active LFL casino customers 30,933 up 23% on 2009

· LFL Casino player yield £479 (2009: £458)

· LFL New Casino players 21,853, up 14% on 2009

· Casino cost per acquisition: £119 (2009: £95)

(*Like for Like (LFL) financials exclude any contribution from casinos acquired during 2010.)

Current trading

Revenues for January and February 2011 are up 29% on the corresponding period in 2010 with strong active player levels and improved player yields. The Board continues to be watchful of the general economic environment but looks forward to a successful and exciting year for 32Red Plc.

Commenting on the results Ed Ware, Chief Executive Officer, said:

“The excellent performance in 2010 is particularly pleasing in times of continued economic uncertainty in our primary market, the UK. The recruitment of good numbers of new players and our improved customer retention are tribute to the strength of the 32Red brand and to the continued excellent levels of service and entertainment provided to our players.

The 32Red brand has been further strengthened by our victory in the High Court in our trade mark dispute with William Hill. The Judgment which was handed down in January firmly establishes our Intellectual Property Rights and should deter other operators from infringing our trade marks. As highlighted by the judge, we have an excellent reputation as an online casino operator and a strong brand - these are extremely valuable assets in any marketplace.

We will continue to focus the 32Red brand in the UK and maintain a close watching brief on regulatory developments in Europe and the Rest of the World.’’

The Audit Committee has determined that, due to dispute with William Hill, it is in the interests of audit quality that the current audit partner should continue in his role for a further year beyond his fifth year of involvement. The Audit Committee is satisfied that by the application of safeguards, the extension does not undermine the objectivity and independence of the auditor.

Grant Thornton UK LLP has agreed to this extension, as permitted by the Ethical Standards.

[Casinomeister]

Just wanted to add that the attached pdf goes into way more detail. It makes for an interesting read - especially the latest on the WH litigation.

[rkj87]

How were they able to increase their EBITDA that much!?

[rainmaker]

How were they able to increase their EBITDA that much!?

EBITDA +90% is...well, maybe no players cashed out last year or they might have outsourched the CS

But seriously, it would be interesting if the rep would give an financial explanation for PBT / EBITDA

[stukas]

Thanks CM for sharing this information, there are very interesting and help to understand the business of online casino. EBITDA is about 10% of total revenues, like more other business activities. I've personal consideration about other data on this file but i will send a PM to casino representative for this.