A new website, which offers greater control of its own technology, has propelled sales and profits at online gambling company 32Red (TTR). Management now has better data on its customers as a result of the April launch, which commercial director Matt Booth said helped the number of players returning for a second month rise above 30 per cent, compared with roughly 28 per cent previously. Active player days in the first month and the average number of deposits have also risen.
This, no doubt, helped net gaming revenue rise by a third to £24.6m, even excluding the July 2015 acquisition of Roxy Palace, which produced an extra £5.8m of turnover and meant total revenues rose 63 per cent. Post the period-end, management extended its agreement with Microgaming and secured further licences from ITV to use branding from two of its popular shows - I'm a Celebrity Get Me Out Of Here and Ant & Dec's Saturday Night Takeaway - on its casino games and advertising.
Analysts at Edison expect pre-tax profit of £9.3m in the year to December 2016, leading to EPS of 9.8p, compared with £3.3m and 3.8p in 2015.
| 32 RED (TTR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 141p | MARKET VALUE: | £118m | |
| TOUCH: | 141-146p | 12-MONTH HIGH: | 186p | LOW: 69p |
| DIVIDEND YIELD: | 2.1% | PE RATIO: | 36 | |
| NET ASSET VALUE: | 12p | NET CASH: | £7.9m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015 | 18.6 | 0.1 | 0.1 | 1.1 |
| 2016 | 30.4 | 2.5 | 2.8 | 1.3 |
| % change | +63 | +2293 | +2700 | +18 |
Ex-div: 29 Sep Payment: 28 Oct *Includes intangible assets of £7.6m, or 9p a share | ||||
