BETDIRECT SOLD FOR GBP 5.75 MILLION

2 November 2007

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).

Online Casino News courtesy of InfoPowa