32Red Plc

("32Red" or "the Company")              

Trading Update 

32Red Plc, the award-winning online betting and gaming operator, is pleased to provide an update on trading for the six months ended 30 June 2010. 

H1 10 Summary

The Company is delighted to report record revenues with total Gross Win of £7.8m (2009: £5.8m). The performance is underpinned by excellent trading at the Company's flagship operation, the 32Red Casino, which has continued to flourish in the first half of 2010.

Casino Performance

Trading stepped up once again during the first half of 2010 with casino operations experiencing strong levels of performance across all disciplines:

·      Gross Win £6.8m (2009: £5.2m)

·      Active casino customers 19,497 up 35% on H1 09

·      Casino player yield £353 (2009: £360)

·      New Casino players 12,289, up 26% on H1 09  

·      Casino cost per acquisition: £86 (2009: £89)

The encouraging performance both in terms of player numbers and revenues reflects the effectiveness of marketing activities and supports the Company's belief in the strength of the 32Red brand, reputation and operational expertise. 32Red Plc continues to take steps to protect its Intellectual Property Rights and litigation with William Hill remains ongoing with a trial date set for October 2010.

Acquired Casinos

On 15 February 2010, the Company announced the acquisition of the assets of two European-focused online casinos, Nedplay and Golden Lounge, both purchased for nominal consideration.

Both casinos have been fully integrated and have generated £0.5m revenues from the period since acquisition up to 30 June 2010. Players of both Nedplay and Golden Lounge have responded well to our direct marketing and we are assessing the marketability of both brands going forwards.

Commenting on the performance, Ed Ware, CEO of 32Red, said:

"Our strong first half performance is particularly pleasing given the challenging economic conditions in the United Kingdom, which remains our core marketplace. We believe that the 32Red brand and its core values continue to provide us with the tools to penetrate the online and mobile casino market successfully. Another period of strong recruitment at reduced cost per acquisition rates since the end of 2008 gives us optimism for the prospects of the business going forwards.

The Group has further strengthened its balance sheet and, having repaid all outstanding bank debt, will increase marketing spend during the second half of the year. While the focus remains in the UK, the Board continues to monitor regulatory developments in Europe and the Rest of the World with a view to expanding into new markets should attractive opportunities arise."  

Performance for the six months ended 30 June 2010 is expected to be in line with market expectations and the Group will announce its full interim results on Thursday, 2 September 2010.

15 July 2010

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