Despite a slowdown in the summer following anti online gaming legislation in the United States, 32Red Plc has reported that its 2006 performance as an online casino, poker and sportsbetting operator has recovered well. The level of new player sign-ups and activity are pleasing and revenue from poker operations is moving forward satisfactorily.

Trading on the recently acquired loss-making Bet Direct sportsbetting operation has continued to be difficult and the unusual number of favourites winning horseraces in October and November has affected 32Red revenue as well as that of other operators. It is likely that Bet Direct business will be moved to Gibraltar and 32Red believes that in 2007 Bet Direct will be in a much improved cash position.

As a direct result of trading conditions the company expects that the combined operating results for 32Red will fall below current market forecasts for the year ending 31 December 2006. The company has an outstanding loan with the Royal Bank of Scotland for £6 million (US$11.8 million), but says that it has a constructive relationship with its bankers and has met all interest and capital repayments. As of today 32Red has a cash balance of around £5.3 million (US$10.4 million). (E-12.13.06)

© Copyright 2006 CasinoCompendium



>>> return to archives
>>> return to frontpage