Online gambling public company releases Q3 update

The 32Red.com online gambling company has released an update on its performance during the third quarter of 2006 ended 30 September, together with reports on the progress of the company's strategic plans.

The announcement notes that 32Red is an established player in the UK market and the recent legislative developments in respect of the American market have vindicated its longstanding strategy of marketing the brand to a predominantly UK audience.  The board of directors believes that the strong UK presence through the 32Red brand, its sponsorship of Aston Villa FC and the recent acquisition of Bet Direct positions the group well for continued development and progress.

Key financial elelments in the statement included:

* Total revenues for Q3 increased by 55.8 percent to GBP4.2 million (Q3 2005: GBP2.7 million) including contribution from the recently acquired BetDirect business
 
* Casino revenues for Q3 were down approximately 10 percent on Q3 2005 due to the widely reported industry-wide issues across the summer

* Poker revenues rose by 77 percent against the corresponding period in 2005 to GBP 400 000.

* There has been a steady recovery in both poker and casino business since the summer.  This trend has continued in the current quarter with daily average performance for both gross win and new player recruitment in October across both the casino and poker platforms encouraging

* Bet Direct revenues of GBP1.57 million were achieved in Q3 2006.  The integration of Bet Direct into the group continues apace, with the online sportsbetting platform migrated to Gibraltar. New casino and poker platforms are now in place.

* The withdrawal from the US market on 13 October 2006 is not material to group performance in terms of EBIT. 

32 Red reported that active customers in Q3 2006 grew to 49 898 (Q3 2005: 6,708) with casino active players up 133 percent at 8 932, active poker players higher at 7 695 - up 168 percent and Bet Direct active customers at 33 271.

New casino players increased by 185 percent to 5 452, new poker players increased by 138 percent to 3 812 and new Bet Direct customers numbered 9 724.

Q3 casino player yield was GBP 251, poker player yield GBP 52 compared with Q3 2005 respectively of  GBP 396; poker of GBP 39)

Average cost per customer acquisition for 32Red (including affiliate costs) on the casino was GBP 137 and on poker GBP 21.

The CEO of 32 Red, Ed Ware commented on the results, saying: "We are pleased to report that the business has continued to recover from the industry-wide dip experienced in and around the 2006 FIFA World Cup.

"Recent trends in the business are encouraging and our daily average performance in activity rates, revenues and new real money players is progressing. We are currently experiencing particularly strong levels of new real money player sign-ups at the casino and poker room supported by our sponsorship of Aston Villa which has markedly increased brand recognition and our profile."