Ahead of the lucrative acquisition deal signed between Kindred Group and the London-listed 32Red Plc, the latter revealed its full-year 2016 results. The group said that it had been a "record year for revenue and profits".
32Red recorded corporate revenues of 28% higher than 2015 (£62 million versus £49 million). Corporate profits grew a whopping 511% - from £1.1 million in 2015 to £6.5 million last year. EBITDA in 2016 literally doubled from £5.2 million in 2015 to £10.6 million one year later.
Other numbers coming from the 32Red 2016 report showed that 77% of the group’s net gaming revenues came from regulated markets.
32Red Ready for Acquisition Deal
On February 23rd, a deal was confirmed whereby the Stockholm-listed Kindred Group - formerly Unibet Group - would acquire 32Red for £175 million. All 32Red’s gaming assets (32Red Casino, 32Red Sports and Roxy Casino) will move to Kindred’s platform, joining brands such as Unibet, Stan James, iGame and more.
The CEO of 32Red, Ed Ware updated investors and commented on the impending takeover.
"The recommended offer for the business by Kindred Group plc post the Period end reflects the strength of the 32Red brand as well as its significant growth opportunities as a casino focused operator," he said. "We are confident that Kindred would provide the right fit both operationally and culturally to continue the Group’s growth."
Outstanding Growth for 32Red
Ed Ware also said that 2016 saw the group deliver continued strategic progress across its entire business, with outstanding growth on mobile, further successful product enhancements and successful marketing investment. All this was achieved, he said, while maintaining one of the highest levels of regulated revenue among its peers.
"This outstanding operational progress has resulted in another hugely successful financial outcome with EBITDA more than doubling and revenues rising by an impressive 28% to exceed prior records," added the CEO.