32Red Active Players Up Revenues Down
More interesting financials from online casino operator 32Red. Looks like they had an increase in active players, which is always good (customer service and retention likely get credit for that) but a revenue drop of 11%. Here's a brief synopsis of the interim results:
- Overall revenues -11.2% to £5.8m, from £6.4m at the same point in 2008.
- Active Casino Players +23% 14,490 over the same period in 2008.
- New Casino Players +19% to 9733 over the same period in 2008.
- 32Red now accepts Paypal transactions (one of the few to do so).
- Invested £400,000 into backoffice and infrastructure.
Some interesting quotes from 32Red:
32Red attributed the fall to “the challenging economic environment faced by the UK and the rest of Europe during the first half of the year”
"Despite the global recession, 32Red has managed to grow its new casino players by a record 9,733, driven in part by our new television advertising campaign that has helped deliver a lower cost of customer acquisition. 32Red is well positioned to take advantage of any improvement in market conditions.’’- Ed Ware 23Red CEO
Looks like the recession, economic climate and consumer's fear of spending on credit continue to affect the bottom line of gaming operators. But kudos to 32Red, they have the exact right idea. Investing into marketing now is the route to go - they've acquired new customers through investment in marketing. Obviously a revenue slip is not what you *really* want but then again during a global recession online gaming will be hit very hard. Particularly if the operator is seeking "retail" or casual players as opposed to heavy gamblers.
They'll be well positioned to retain those clients and activate them when spending trends begin to rise. Smart business in tough times.
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