32Red posts ‘Record Breaker 2016’ ahead of Kindred acquisition

32Red posts ‘Record Breaker 2016’ ahead of Kindred acquisition

by 09.03.2017 0 comments

The governance of 32Red Plc has declared a ‘record year for revenue and profits’ ahead of its £175 million acquisition by Stockholm-listed Kindred Group (deal confirmed 23 February).

Presenting its full-year 2016 results, in what will likely be its last corporate update as a London AIM-listed enterprise. 32Red recorded corporate revenues of £62 million up 28% on corresponding FY 2015’s £49 million.

Company 2016 EBITDA would double to £10.6 million (2015: £5.2 million), with the operator reporting 2016 corporate profits of £6.5 million up 511% on FY 2015’s £1.1 million.

Detailing 2016 corporate highlights, 32Red governance noted the positive contribution of its regulated market performance which contributed 77% of net gaming revenues. The firm’s growth strategy was further supported by the successful launch of its new responsive ‘multi-platform’ website in H1 2016.

Moving forward, 32Red gaming assets (32Red Casino, 32Red Sports and Roxy Casino) will be incorporated under the Kindred Group stable. The brands will form part of Kindred’s multi-brand European market strategy which includes Unibet, Stan James, iGame, Maria Casino and Bingo.com.

Updating investors, Ed Ware CEO of 32Red stated that company would continue to undertake its effective growth strategy within regulated markets, until its acquisition by Kindred was officially completed.

Commenting on FY 2016 performance Ed Ware CEO of 32Red stated

“It is once again a pleasure to announce another record annual performance from 32Red. In 2016 the Group delivered continued strategic progress across the business with outstanding growth on mobile, further successful product enhancements and highly successful marketing investment, all the while maintaining one of the highest levels of regulated revenue amongst our peers. This outstanding operational progress has resulted in another hugely successful financial outcome with EBITDA* more than doubling and revenues rising by an impressive 28% to exceed prior records.”

“The recommended offer for the business by Kindred Group plc post the Period end reflects the strength of the 32Red brand as well as its significant growth opportunities as a casino focused operator. We are confident that Kindred would provide the right fit both operationally and culturally to continue the Group’s growth.”

“The Group’s outstanding performance in 2016 is, above all, testament to the efforts of our outstanding team. Their passion, skill and dedication continues to drive the business forward. 2017 is set to be another landmark year for 32Red and I would like to thank all of my colleagues for their continued dedication and hard work.”

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