Online gaming company 32Red to beat revenue forecasts

Reuters News
Posted: Jul 23, 2012 2:48 AM
Online gaming company 32Red to beat revenue forecasts

LONDON (Reuters) - Online gaming company 32Red PLC <TTRL.L> said its revenues this year would beat market forecasts after they rose 50 percent in the first six months.

The Gibraltar-based company, which operates a range of casino-style games online, also said it planned to enter the Italian market during the second half of the year. Most of its current players are based in Britain.

Revenues increased to 16.5 million pounds ($25.8 million) in the six months to end-June, from 11 million a year ago, and were up by 28 percent in the first 20 days of July.

"The strong H1 trading performance and current trading is likely to see the company deliver revenues that are ahead of current market expectations for 2012," CEO Ed Ware said in a statement on Monday.

"The company continues to invest in marketing and confirms that profits remain in line with management expectations."

32Red is following the example of larger rivals William Hill <WMH.L> and Paddy Power <PAP.I> by launching online casinos in Italy, one of the biggest gambling markets in the world.

"We look forward to launching during the second half of the year and welcome the recent decision by the Italian authorities to commence the procedures to approve online slots games from December 2012 onwards," Ware said.

($1 = 0.6397 British pounds)

(Reporting by Keith Weir, Editing by Rosalba O'Brien)