How marketing fired 32Red’s record breaking 2015

How marketing fired 32Red’s record breaking 2015

Thursday, March 10, 2016 Totally Gaming
Ed Ware praised his company's "first-class, ROI-driven marketing skills"

32Red said that increased and effective marketing was at the heart of its record-breaking performance in 2015.

In its final results for the year to December 31, the online gaming operator said that it benefited from a 68 per cent increase in marketing spend at a time when rivals were scaling back and others were forced out of the UK due to tax changes. 

The company said total net gaming revenue was up 52 per cent year-on-year to £48.7m (€63.4m/$68.9m), with underlying operating profit up seven per cent to £6.4m. It added that marketing spend return on investment (ROI) metrics “continued to strengthen in 2015,” while “marketing expenditure incurred in any one month was 'paid back' within less than 90 days in gross gaming revenue derived from new players directly attracted by that month's marketing spend”.

32Red spent £15.4m on marketing in 2015, a big increase on the £9.2m budgeted in 2014.

"2015 was a very exciting and indeed record-breaking year for 32Red, achieved despite significant external regulatory and tax headwinds,” said chief executive Ed Ware. “These results are an excellent demonstration of 32Red's core strengths - a talented and dedicated team, first class ROI-driven marketing skills and established, highly appealing online gaming brands.

“Marketing expenditure will be increased again in 2016 we are well positioned for another year of progress, building on the excellent achievements in 2015.”

The company said its operation’s revenues were up 35 per cent to £41.7m, while its 32Red Italy arm’s takings soared by 54 per cent to £1.7m. The company noted a 17 per cent increase in its full-year ordinary dividend, with 1.7p to be paid on top of the 3.0p announced as a special dividend last month.

The company added that trading during 2016 to date has been “very strong across the group's portfolio,” with like-for-like net gaming revenues up 35 per cent. That figure was up 66 per cent when including the contribution from online gaming business Roxy Palace, which 32Red bought for £8.4m last July.

Ware added: “The acquisition of the Roxy Palace business in July complements the strong organic growth delivered in the core business as we exploited targeted marketing opportunities and attracted new customers to the 32Red brand.

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