32Red Plc floats with a market capitalisation of approximately £60 million!
23 September 2005
Admission to the Alternative Investment market (“AIM”)
32Red Plc is a UK-focused online gaming business predominantly comprising two distinct activities: casino and poker. The Company offers customers over 200 online casino games (including roulette, blackjack and slot machines), played against the house. The Company also operates a multiplayer online poker room.
Application has been made to the London Stock Exchange for the Ordinary Shares to be admitted to trading on AIM. Admission will take place and dealings in the Ordinary Shares on AIM will commence at 8.00 a.m. today. On Admission the Company will have 47,335,500 Ordinary Shares in issue and a market capitalisation of approximately £60 million.
- 32Red offers casino games to customers via the Company’s gaming site at 32Red . At 32Redpoker.com customers can play in ring games and tournaments via the Prima Poker network, which has 400,000 registered members. During the six months to 30 June 2005, 93.4% of revenues were derived from casino games and 6.6% from poker
- A large majority of 32Red customers are based in the UK. For the six months to 30 June 2005, approximately 83% of revenues from casino and approximately 78% of revenues from poker were drawn from the UK and Ireland
- 32Red generated net gaming revenues of approximately £5.9 million in the year to 31 December 2004 and net profit of £1.1m. In the six months to 30 June 2005, the Company generated net gaming revenues of approximately £4.2 million and net profit of approximately £1.0 million
- The Company’s casino gross win for the month of July 2005 was 59 per cent higher than the equivalent period in 2004. Poker also continues to show strong growth and generated a higher revenue figure in July than in any previous month
- 32Red was established in 2002. The CEO, Ed Ware, was previously Managing Director of Ladbrokes International Limited and over the past three years has assembled a team of experienced betting and gaming professionals to manage and grow the business
- 32Red operates under a gaming licence granted by the Government of Gibraltar. Software is provided under licence by MicroGaming, which also operates the Prima Poker network. The Company uses Barclaycard Services for the processing of all credit and debit card transactions
- The directors believe that the 32Red website has distinctive branding and other characteristics which make it particularly attractive to UK online casino players. In addition, the Directors believe that 32Red ’s high levels of customer service, for which it has received industry awards, are a key differentiator and will form an important element in the Company’s future success
- The directors believe that the Company is well positioned to take advantage of continued growth in the online casino and poker markets. It is intended that 32Red will continue to focus its marketing activities on the UK but with increased online and offline activity in Japan, Scandinavia and other European regions
Ed Ware, CEO of 32Red said:
“32Red has built a strong reputation in the UK for delivering one of the best gaming experiences available online. Our investment in software, fast payment processing, customer service and marketing has paid off and delivered strong revenue growth in a competitive market”.
“Admission to AIM takes us forward to the next stage. It will give us greater flexibility in this fast moving market and the option to raise funds at the appropriate time.”