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32Red looks forward to excellent growth in 08

32Red plc has today reported results for a challenging 2007, recording a fall in net gaming revenue and widening losses as the company struggled with its now divested Betdirect business.

Net gaming revenue from continuing operations fell 2.5% to £10.2 million, resulting in an operating profit of £1.3 million. However the poor performance of the Betdirect business and the write-down of assets following its sale pushed the group's loss to £12.9 million for the year ended 31 December 2007.

The company's casino continued to deliver the strongest results with revenues climbing 7.6% to £9.0 million, representing 88% of total revenues from continuing operations. The number of active casino players increased 26.6% to 18,992, however average casino player yield fell by 14.9% to £474.

The poker segment continued to struggle, recording a 7.2% fall in net gaming revenues to £1.2 million, despite a 6.6% increase in active player numbers to 14,753.

The company said that following the sale of Betdirect late last year, the re-shaped business now has the ability and flexibility to expand into new gaming related products and territories, such as last months launch of a French language service and the upcoming launch of 32Red Bingo.

“The sale of Betdirect has refocused the group on its core products of Casino and Poker and has in 2008 returned the group to a cash positive position. Management are focused on building growth, expanding our product range and moving into new territories through the 32Red brand," said Chief Executive Ed Ware.

"We have seen a very encouraging start to 2008 with excellent growth at the 32Red Casino. We have surpassed several important milestones in the first few weeks of 2008 and look forward with confidence to an exciting year.”

Shares of 32Red plc remained unchanged this morning in London having recorded no trades since March 4th.