by Ryan D. Jaeger
32Red Plc, the LSE publicly trading online gaming company, has
released a profits warning for the full year, despite a growth in revenues and
active players recorded in the third quarter of 2009.
The group, which is based in Gibraltar, said that its profits would be below
market expectations due to challenging market conditions that were experienced
across the globe.
There were several positive results this year, according to 32Red Plc,
including the fact that its third quarter revenues were the "highest ever
experienced" by the company.
Third quarter revenues rose 11% in comparison to last year and a 24% rise
quarter on quarter was also recorded.
The main contributor to these figures was the performance of 32Red's online
casino which enjoyed a 10% rise in profits compared to 2008 and 21% up from the
last quarter.
Another positive result came from the growth in active players - up 16% in
the last quarter in a year on year comparison.
However, despite these positive results, challenging market conditions would
still mean that the group' full year profits would remain below market
expectations, 32Red said this week.
The first half of 2009 saw 32Red post a drop in profits of a staggering 70%,
while revenues also fell 11% to £5.8 million.
While 32Red Plc management considered various steps to combat the low profits
this year, including cutting its marketing budget significantly, it was
eventually decided to continue in the usual format.
32Red Plc offers several top market brands including 32Red Casino, 32Red
Bingo, 32Red Mobile and Dash Casino.
