26/8/2008

Interim results for the six months ended 30/06/08

32Red Plc, the award-winning online gaming
operator, today reports interim results for
the half year ended 30 June 2008.


As detailed in the trading update issued on
23 July 2008, the Board has been pleased
with the Company's performance during the
first six months of 2008. The Company has
enjoyed a record level of Gross Win for the
period and as a result of its cost
effective marketing, has experienced
significant growth in Gross Profit Margins,
resulting in improved profit before taxation.


All comparatives are for continuing 32Red operations
and exclude any results derived from the Betdirect
business, sold on 30 October 2007.


Highlights:

• Total gaming revenues of £6.6m, an increase of
  26% on H1 2007 and 32% on H2 2007
• EBITDA before share option costs totalled £1.0m
  for the first 6 months, up 17% on H1 2007 and up 13% on
  H2 2007
• Casino revenues of £6.0m, an increase of 31% on
  H1 2007 and 38% on H2 2007
• Active casino players in the first 6 months : 12,283,
  up 14% on H1 2007 and up 9% on H2 2007
• Casino yield per active player in the first 6 months :
  £491, up 15% on H1 2007 and up 26% on H2 2007
• New casino players in the first 6 months: 8,189, up 12%
  on H1 2007 and up 12% on H2 2007
• Casino cost per acquisition in the first 6 months of
  £137, down 12% on H1 2007 and down 3% on H2 2007
• Successful launch of 32Red Bingo product in May 2008
• Successful launch of 32Red mobile phone gaming platform
  and a French language casino service

Ed Ware, CEO commented:


"I am pleased to report an excellent performance
during the first half of the year. The re-focusing of
our efforts to accelerate the growth of the 32Red
business has delivered immediate results, both in terms of
revenue growth and improved bottom line profit. The strong
growth in the 32Red casino has been driven by both increased
active player numbers and an improved yield per player.
The positive current trading leads the Board to conclude
that prospects for the year are very encouraging.


In addition to the successful launch of a mobile phone
gaming service, we have introduced an integrated Bingo
offering and a French language casino during the first half
of the year. We continue to investigate possible new
gaming-related products to add to our existing portfolio,
although we remain focused on taking 32Red's Casino business
to the next level."

26 August 2008

Performance Summary


Trading during the first six months of 2008 has been
encouraging with total Gaming Revenues of £6.6m, an
increase of 26% on H1 2007 and an increase of 32% on H2 02007.
EBITDA before share option costs was £1.0m, up 17% on H1 2007
and up 13% on H2 2007.


This strong performance has been driven by 31% growth in casino
revenues and is a direct result of the re-focus by management on
the core 32Red product following the disposal of Betdirect.


Casino


Casino operations have delivered strong growth in H1 2008 with
Gross Win of £6.0m, up 31% on H1 2007 and up 38% on H2 2007. 32Red
Casino continues to dominate the Group's trading, representing 92% of
total group revenues and remains central to our growth plans. The
impressive growth in Casino revenues reflects the double-digit percentage
growth in both player numbers and in yield per player.


The number of active casino players during the six months totalled 12,283,
up 14% on H1 2007 and up 9% on H2 2007. New players attracted during the
period totalled 8,189 up 12% on H1 2007 and were acquired at a lower cost of £137
(H1 2007: £155), reflecting the Group's cost-effective approach to
marketing.


Player yield per active player was £491 during the period, up 15% on H1 2007
and up 26% on H2 2007. 32Red consistently delivers yields in excess of industry
averages and casino players continue to be loyal to 32Red in recognition of the
unrivalled customer service delivered by our dedicated Player Support team.
32Red's fifth consecutive Casinomeister Best Casino Award is unprecedented and
testament to the quality of the service delivered by 32Red.


Poker


Poker operations have generated revenues of £0.6m (H1 2007: £0.6m) representing
just 8% of total Group revenues. The board continues to evaluate all aspects of
the 32Red Poker experience in an increasingly competitive poker market.


Poker yield per player totalled £64 during H1 2008, an increase of 12% on H1 2007.
The number of active poker players decreased to 8,668 in H1 2007, down 19% on
H1 2007, but in line with the 8,802 active players in H2 2007.


Bingo


32Red Bingo was launched during May 2008 and initial results from a small television
advertising campaign are encouraging, confirming our belief that the 32Red brand
sits comfortably as a bingo proposition and has potential. While it is too early to assess
the likely financial impact of the Bingo product on the group, the opportunities presented
by cross-selling of instant win games and mini slots are a source of encouragement.


Strategy


Core 32Red products - 32Red brand recognition continues to be
strong and the Board believes hat significant growth opportunities
remain in the UK and selective European markets. The prominent
sponsorship of Aston Villa Football Club ceased as planned in May
2008 and while the benefits of this sponsorship will be felt for
some time to come, other advertising opportunities have become more
attractive in the UK following the full implementation of the Gambling
Act in September 2005.


New 32Red products - The Board intends to promote its 32Red Bingo
product with a targeted marketing campaign in the autumn, following
the launch of complementary instant win and mini slot games
on the site. The Board is pleased with the initial uptake of its
mobile casino service, launched in February 2008 and will continue
to monitor technological developments in this field. The Board is
currently in negotiations with third parties which may lead to
further product differentiation in the coming months.


New Territories - During H1 2008, the Company launched a 32Red French
language service and is currently considering legislative developments
in other European countries. The Company continues to
evaluate market-specific activities in the Far East and will provide
further updates on these opportunities in due course. The Board believes
that the 32Red brand identity and its values have the
potential to establish a stronger presence in territories outside
of the United Kingdom.


Current Trading


The second half of the year has started encouragingly with Group Gross Win for the 7
weeks ended 18 August 2008 up 22% on the corresponding period in 2007. The year on year
growth is driven by the continued excellent performance of the 32Red casino during the
traditionally quieter summer months.


The positive current trading performance allied with the exciting opportunities presented
by new products and new territories, has led the Board to conclude that prospects for the full
year are very encouraging.


32Red Plc
Consolidated Income Statement
for the six months ended 30 June 2008

32Red Plc
Consolidated Balance Sheet
as at 30th June 2008

32Red Plc
Consolidated Statement of Cash Flows
for the six months ended 30 June 2008

Notes:


1. Accounting policies


The consolidated financial statements have been prepared
in accordance with the measurement principles of applicable
International Financial Reporting Standards as adopted by
the EU and International Financial Reporting Standards as
issued by the International Financial Reporting Standards
Board (IFRS). The accounting policies have remained unchanged
from the previous year, as set out in the Annual Report for
the year ended 31 December 2007, available on www.32redplc.com.


2. Earnings per share


Basic earnings per share have been calculated by dividing the net
results attributable to ordinary shareholders by the
weighted average number of shares in issue during the
relevant financial periods.


The weighted average number of shares used for basic earnings
per share amounted to 69,083,563 shares (2007: 62,120,833).


To calculate the diluted earnings per share figure, the
weighted average of employee share options expected to vest has
been added. This number represents management's best estimate
at the balance sheet date, which is also used for calculating
employee payments relating to share based payment transactions.
At 30 June 2008, the weighted average number of share options
expected to vest was 3,245,707 (2007:1,566,796).

3. Taxation

The Company has been granted tax exempt status under
the Companies (Taxation and Concessions) Act. Under the
terms of such status an annual charge of £450 is payable
to the Government of Gibraltar. Provided the Company
complies with the necessary criteria, payment of such
charges will satisfy the company's tax obligation in
Gibraltar in relation to the period.


4. Intangible assets

5. Property, plant and equipment

This information is provided by RNS
The company news service from the London Stock Exchange