32Red 'Cash-Generative' following BetDirect Sale

1 February 2008

Nearly a year after 32Red reported a full-year pre-tax loss of £3.7 million and a canceled dividend, the London-listed company said it is looking toward being back in the black.

Following the sale of its lossy BetDirect business to Stan James in October, 32Red Chief Executive Ed Ware remarked that the group returned immediately to a "cash-generative position." The £5.75 million sale of BetDirect to Stan James was wrapped up on Dec. 10, 2007.

32Red's business for the year ending Dec. 31 was bolstered primarily by its strong performance in casino, it said, with gross win for its casino arm totaling roughly £9 million, up 7.6 percent against figures from the previous year. The group reported that new casino players were also up 26.6 percent to 18,992, compared to 2006.

As for the expansion of its casino business, the company said it would launch a French-language casino service "as the first of a number of entries into targeted European territories."

The company also announced its imminent entrance into the bingo market with branded Web site 32RedBingo.com. The site is due to launch in early February and will initially target the United Kingdom.

Regarding the possibility of Asian expansion, 32Red said it "continues to actively investigate commercial opportunities in this region and will provide an update in due course."

The company said that it was "pleased" with current trading, adding that it has seen "strong growth" in its casino and poker businesses over 2007.

"The launch of new products and new language services herald the start of 32Red's next phase of growth," Ware said.

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