32Red 33% Revenue Increase
32Red has decided to focus on the UK market but it would keep a close eye on neighbouring European markets of which some of them would soon be regulated within the next year. Profits of 32Red increased by 33% in 2010.
32Red’s director of finance, Jon Hale said in a recent interview that he’s delighted over the internet casino’s most recent trading update. In a very challenging economic environment not only did its income soar but its player base significantly increased the last year. “It’s very satisfying to see we’ve generated 33% growth year-on-year when many of our players began to feel the bite of the current recession. “It remains to be seen how exactly taxes will impact on our overall revenue within the next year. To be honest I don’t want to get ahead of myself yet, but I am fairly certain of a two-figure growth in the next year.”
Hale consented that 32Red is prepared to invest in additional regulated markets in order to increase its new player base and revenues. “It’s imperative we remain focussed on our mainstay brand (32Red casino) and the UK which is our flagship market and keep tabs on newly regulated markets, be it in Europe or other countries.
“It is vital that whatever we chew over is financially feasible and we’ve analyzed the problems other internet casinos experienced in France, in essence before we invest in a newly regulated market the tax bracket must be favourable to us.”
According to its latest release today 32Red publicized that its total revenue has increased to £16.9m in comparison to £12.8m in 2009, £14.8m from its principal internet casino. Improved player retention is one of the main contributing factors, active casino players increased by 23% and the average yield per player has gone up from £21 to £479.
“Player maintenance is indicative of the strength of our brand in the UK and in Europe,” said Hale, who believes the increased cost of player recruitment (up £24 per player to £115) is worth the effort.
“Our customer service is excellent and many players can attest to this. We’ve had many players leave us in the past just to return to 32Red.
“As a result of the substantial increase in new players we’ve decided to look into this as well, as long as there’s a good marketing strategy in the UK with sponsorship and online/offline advertising,” he added.
Even as the signs from 2010 look very positive, Hale rather opted to keep his feet firmly on the ground instead of his head in the clouds, not before other operators have released their financial figures. “It’ll be exciting to see how our competitors fare, our figures speak for itself even in a very tough economic climate,” he concluded.[addtoany]