BetDirect sold to Stan James

[jetset]

BETDIRECT SOLD FOR GBP 5.75 MILLION

32Red to focus on core activities and geographic expansion

Bought from Sportech almost 18 months ago for GBP 12.5 million, 32Red's sportsbook Betdirect.com was sold in September to bookmaker group Stan James for GBP 5.75 million, according to 32Red's half year results released this week.

At one stage Boylesports was reportedly interested in a deal, but CEO Daniel O'Mahoney announced his company's withdrawal recently (see previous InfoPowa report)

32Red is to use the funds from the sale to focus on marketing its remaining casino, poker and sportsbetting offerings and realise expansion plans for new geographic regions, the results report revealed.

Chief executive Ed Ware said: “The sale of the Bet Direct brand allows us to channel our marketing and management focus on the core 32Red brand.” He also advised that the company has plans for the introduction of mobile gambling and bingo services later this year.

32Red's half year results saw an impressive rise in total revenues of 47.2 percent, reaching GBP 9.2 million. But casino and poker revenues were disappointing, with the former showing little improvement and the latter declining by nearly 4 percent.

The online gambling group's casino operations contributed GBP 4.6 million to revenues, just short of a 2 percent increase whilst poker revenues declined 3.8 percent when compared to the same period last year, when GBP 600 000 in revenues was reported.

There was more positive news on the customer acquisition front, however, with 32Red reporting the number of active customers well up at 75 911 (44 539 in the same period last year).

[jetset]

STAN JAMES SECURES BETDIRECT DEAL (Update)

Stan James (Gibraltar) Limited comments on Bet Direct acquisition

Gibraltar-based bookmaker Stan James (www.stanjames.com) has commented on its acquisition of the Bet Direct online sportsbook, casino and poker operation from 32Red plc for GBP 5.75 million (see previous InfoPowa report).

The deal sees Stan James taking over UK-focused Bet Direct with a completion date of 10 December 2007.

CEO of Stan James, Peter Fisher said of the deal, "Bet Direct is a well established bookmaking brand which fits well into our existing operations. The acquisition is very exciting for everybody associated with Stan James and Bet Direct, as well as a fantastic opportunity to align our complementary strengths. We are fully committed to helping Bet Direct reach its full potential and delighted that the board of 32Red has accepted our offer. Bet Direct's future is even stronger than its past.”

Stan James’ latest announcement comes on the back of the launch of its mobile betting service, Stan James Mobile, as well as the bookmaker's revolutionary SJ Price; whereby Stan James uses its own prices for all UK Horse Racing. This innovation means that Stan James offers as good as, if not better prices than Amrac and SIS board prices, as well as also guaranteeing prices against SP, delivering better value for customers.

[chuchu59]

Buy Acropolis. Diversification and market segmentation will bring them a lot of benefits. Ooo. Love that creepy atmosphere.

[Simmo!]

If Stan James keep Betdirect casino and poker on MG - which I assume they will bearing in mind the existing customer base - and drop the Chartwell casino, its a very good move IMO.

[Slotster!]

Wonder why 32 offloaded so quickly?

The 7% SP drop following suspension doesn't make it any sweeter either

I've been being a good boy and losing there at every opportunity!!