32Red still in the red
32Red plc, the online casino and gambling company, revealed today that it had made an annual loss of £3.74 million for the year ending on 31st December. That figure is in contrast to an operating profit of £1.3 million in 2005.
The main drain on 32Red’s operations has been the poor performance of the loss-making Betdirect, the sportsbook company it acquired in June 2006 for £12 million. The company is responsible for an astounding 265% increase in the group’s admin expenses.
Yet again BetDirect has proved to be hard work for even the most discerning of companies. Prior to being owned by 32Red, BetDirect was owned by Littlewoods who also found it hard to make the jinxed sportsbook turn a profit.
However, 32Red plan to migrate Betdirect’s operations to Gibraltar, where it currently operates its 32Red online casino, by June of this year thus making huge savings in gaming taxes and levies in the process.
Nevertheless, minus Betdirect’s ailing performance, results for 32Red’s online casino were not stunning. They saw a 12% growth in total revenue despite being relatively unaffected by the US’s crackdown on internet gambling.
“2006 has been a year of transition for the company: we have continued to grow our casino and poker platforms and acquired a strategically important sportsbook operation,” said Ed Ware, Chief Executive Officer for 32Red plc.
“Integration with our other businesses will be complete by June 2007 delivering the planned benefits of significant cost savings and improving our ability to migrate players across platforms and games.”
32Red have also announced a revised banking deal of £3.5 million with the Royal Bank of Scotland, an agreement they almost breached last year.
Editor, Jackpot.co.uk - 2007-03-13 11:33:12