Proactiveinvestors Australia 32RED https://www.proactiveinvestors.com.au Proactiveinvestors Australia 32RED RSS feed en Tue, 23 Jul 2019 23:29:31 +1000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - 32Red and Kindred agree £175mln takeover deal ]]> https://www.proactiveinvestors.com.au/companies/news/173593/32red-and-kindred-agree-175mln-takeover-deal-173593.html Swedish online gaming company Kindred Group has agreed a £175.6mln deal to take out its smaller UK rival 32RED PLC (LON:TTR).

The deal is the latest in a wave of betting industry consolidation as bookmakers and online gaming operators look to add additional scale to meet an increasing burden of tax and regulation.

Analysts have said the move is overdue given that Kindred – formerly known as Unibet – hasn’t made an acquisition since it bought StanJames.com back in 2015.

32Red has long been seen as a possible target for one of its bigger peers and its share price has rallied in recent weeks on renewed takeover speculation.

Under the terms of the bid, 32Red shareholders will receive 196p for each share held as well as a second interim dividend of 4p per share, although this will be paid for by 32Red and not Kindred.

In total, the offer values AIM-listed 32Red at a 16% premium compared to yesterday’s closing price of 172p.

“We have consistently and profitably grown 32Red's market share in the regulated markets of the UK and more recently, Italy,” said 32Red’s Ed Ware.

“The management team at Kindred have a similar business philosophy to our own and we look forward to joining forces with Kindred and continuing our successful growth within the Kindred group.”

Kindred said it will fund the acquisition through a new senior debt facility with Swedbank, which has been arranged specifically for this acquisition.

The Swedish group, which is actually based in Malta, said it has already received confirmation from shareholders who hold a combined 71.1% stake in 32Red that they will accept the offer.

The offer is conditional upon Kindred gaining acceptances of more than 75%.

Kindred is one of the world’s largest online gaming and sports betting companies with a portfolio that includes the likes of Unibet, StanJames.com and bingo.com.

Shares were up 16% to 200p midway through morning trading.

--Updates for background info and share price--

]]>
Thu, 23 Feb 2017 08:02:00 +1100 https://www.proactiveinvestors.com.au/companies/news/173593/32red-and-kindred-agree-175mln-takeover-deal-173593.html
<![CDATA[News - 32Red Plc confident after first half sets new revenue and earning’s records ]]> https://www.proactiveinvestors.com.au/companies/news/166232/32red-plc-confident-after-first-half-sets-new-revenue-and-earnings-records-166232.html Online betting group 32RED Plc (LON:TTR) is looking forward with confidence after marking a 63% rise in net gaming revenue, to £30.4mln, in the six months to June 30.

This record breaking revenue performance similarly set a new benchmark for the group’s half year earnings with EBITDA of £4.5mln, up 258% compared to the first half of last year.

A highlight of the results was the growth of mobile based casino gaming, which now represents 50% of the group’s total casino derived revenues (in H1 2015 it was 42%).

32Red told investors it was confident it would meet expectations for the full year.

“Current trading remains strong with like-for-like NGR up 4% on very strong comparatives in the second half to date,” said Ed Ware, chief executive.

“Underpinned by our strong online gaming brands and exciting customer-focused offer, the board remains confident of meeting its expectations for the full year."

Ware added: “We are also delighted to announce today the renewal of our contract with Microgaming.

“We have enjoyed a long and strong partnership with one of the world leaders in digital gaming expertise and are very excited to have strengthened our relationship in a way that provides 32Red with further opportunities to invest in and develop our business.”

]]>
Wed, 21 Sep 2016 09:43:00 +1000 https://www.proactiveinvestors.com.au/companies/news/166232/32red-plc-confident-after-first-half-sets-new-revenue-and-earnings-records-166232.html
<![CDATA[News - 32RED PLC shares up as it strikes sponsorship deal with Leeds United ]]> https://www.proactiveinvestors.com.au/companies/news/125904/32red-plc-shares-up-as-it-strikes-sponsorship-deal-with-leeds-united-125904.html Shares in online casino firm 32RED PLC (LON:TTR) kicked up almost 13% as it unveiled a three-year shirt sponsorship deal with Leeds United and said that group trading had remained 'very strong' this year.

It will give the gaming firm access  to the historic's club's global fan base and visibility throughout the Elland Road stadium.

Chief executive Ed War said: "We are delighted to be working with Leeds United football club, a true giant of English football with an amazing and passionate fan-base. 

"We have a proud history of successful football club sponsorship deals and this is a fantastic opportunity to work with such an iconic club and showcase the 32RED brand. We look forward to our association with Leeds United over the coming seasons."

The group added that 32RED's like-for-like net gaming revenues for the first 19 weeks of the year to May 11 was up 39% on the same period in 2015 and up 71% including the contribution from Roxy Palace.

"The board is pleased with this strong trading momentum and remains confident of delivering its expectations for the year."

32Red's brands include the 32Red.com online casino, Roxy Palace, 32Red Sport, 32Red Bingo and 32Red Poker.

The content can be accessed via mobile and desktop platforms.

Shares surged 12.9% to 131.25p.

]]>
Fri, 13 May 2016 08:46:00 +1000 https://www.proactiveinvestors.com.au/companies/news/125904/32red-plc-shares-up-as-it-strikes-sponsorship-deal-with-leeds-united-125904.html
<![CDATA[News - 32Red PLC off to flying start to 2016 ]]> https://www.proactiveinvestors.com.au/companies/news/123512/32red-plc-off-to-flying-start-to-2016-123512.html Online casino games operator 32RED PLC (LON:TTR) had a record-breaking year in 2015, and is off to a flyer in 2016.

Total net gaming revenues at the core 32RED business rose 35% to £41.7mln from £31.0mln, while 32RED Italy chipped in with £1.7mln of revenues, up 54% from £1.1mln the year before.

Add in £5.2mln of revenues from Roxy Palace, acquired in July 2015, and Total net gaming revenues were up 52% to a record £48.7mln from £32.1mln in 2014.

The introduction of the point of consumption tax (POCT), however, put a crimp on underlying earnings (EBITDA), which fell to £6.2mln from £5.4mln after taking into account a doubled investment of £1.2mln into Italy.

The group paid £4.8mln in POCT during 2015, up from £0.4mln in the previous year.

Adjusted earnings per share dipped 2% to 6.97p from 7.08p the year before, but that did not stop the board from recommending a 17% hike in the full-year dividend to 2.8p from 2.4p, in addition to the special dividend of 3p a share announced on 10 February.

Cash at the end of 2015 stood at £10.3mln, up from £7.0mln a year earlier.

The company said it had made a strong start to 2016 with like-for-like net gaming revenues for the first nine weeks of the year up 35% on the same period in 2015 and up 66% including the contribution from Roxy Palace.

Chief executive officer Ed Ware said the company had notched up a record-breaking year despite significant regulatory and tax head winds.

“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,” Ware said.

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

The shares rose 3.8% to 163p in the first half-hour of trading.

]]>
Thu, 10 Mar 2016 08:35:00 +1100 https://www.proactiveinvestors.com.au/companies/news/123512/32red-plc-off-to-flying-start-to-2016-123512.html
<![CDATA[News - 32Red reveals record revenues for 2015 ]]> https://www.proactiveinvestors.com.au/companies/news/121590/32red-reveals-record-revenues-for-2015-121590.html Online casino group 32RED (LON:TTR) told investors it had record gaming revenues in 2015, up 51% at £48.6mln.

32RED, in an update ahead of its financial results, it pointed to a combination of accelerated organic growth (of about 35% on the prior year) for its core business as well as the £5mln contribution from the Roxy Palace business which was acquired in July.

It added that early trading in 2016 has been strong, with revenue for the first nineteen days of the year up 27% compared to the same period of 2015. Roxy Palace contributed some 54% of revenue in this period, it added.

"I am delighted to report a record revenue performance for 32RED in 2015, despite significant regulatory and tax headwinds,” said Ed Ware, 32RED chief executive.

“As a result of the strong organic growth delivered throughout the year as well as the smooth integration of the Roxy Palace business, the company expects to report EBITDA slightly ahead of expectations for 2015 when it announces its preliminary results on Thursday 10 March 2016.”

]]>
Thu, 21 Jan 2016 09:40:00 +1100 https://www.proactiveinvestors.com.au/companies/news/121590/32red-reveals-record-revenues-for-2015-121590.html
<![CDATA[News - 32Red poised for ‘transformational’ Italian launch, brokers say ]]> https://www.proactiveinvestors.com.au/companies/news/42689/32red-poised-for-transformational-italian-launch-brokers-say-50955.html Virtual casino operator 32RED (LON:TTR) is expected to be among the front-runners in a new European gambling market come Monday.

Italy opens up a licensed and regulated online gambling market on Monday. Ahead of the launch, 32RED this morning confirmed it has now begun trading under its Italian Remote Gaming Licence.

According to City scribblers, the AIM quoted firm, which is valued at just £30mln, is well placed to cash-in on this significant opportunity.

“If all goes to plan (32RED) will be among the first to offer government-approved online slots games in Italy,” Numis analyst Ivor Jones said in a note.

“As 32RED only recently started taking deposits from Italy our forecasts are highly uncertain but success in Italy is potentially transformational.”

“Not all of its competitors have cleared all the regulatory hurdles required to start offering slots from Monday morning. But 32RED has ticked all the boxes, hired Italian staff and prepared its online marketing strategy so that it can hit the ground running.”

Jones says that 32RED’s performance in the UK shows it has the skills to thrive in a market dominated by larger competitors, and even a small market share in Italy could be transformational for the company - which had 40,000 active players in 2011

Elsewhere in the City, Michael Campbell, of Daniel Stewart, said that while it was undoubtedly good news, 32RED would now have to invest in marketing to build the brand in Italy.

Daniel Stewart rates the casino firm as a ‘buy’ with a 55p target.

In a statement to the stock market this morning 32RED chief executive Ed Ware said: "We are very pleased to be one of a relatively small number of online casino operators fully approved to trade in Italy.

“We believe the market there provides a great opportunity for us to establish a new and regulated income stream for 32RED, especially with the imminent introduction of Slots. Our Italian team has been hand-picked and it is ready to extend our reach and excellent reputation into Italy.''

]]>
Thu, 29 Nov 2012 11:51:00 +1100 https://www.proactiveinvestors.com.au/companies/news/42689/32red-poised-for-transformational-italian-launch-brokers-say-50955.html