Source - RNS
RNS Number : 3759K
32Red Plc
21 September 2016
 

21st September 2016

 

32Red Plc

("32Red'' or ''the Company")

Interim results for the six months ended 30 June 2016

 

Record revenue and profitability performance and key strategic progress

 

32Red, the award-winning online gaming operator, today reports Interim results for the six months ended 30 June 2016.

 

Key Financials:


Total Net Gaming Revenues ('NGR')
 

H1
2016

H1
2015


Growth

32Red Casino NGR

£21.2m

£17.0m

+24%

32Red Other Products NGR

£2.3m

£0.7m

+225%

Italy - 32Red.it NGR

£1.1m

£0.9m

+33%

32Red NGR

£24.6m

£18.6m

+32%

Roxy Palace NGR

£5.8m

-

 

Total NGR

£30.4m

£18.6m

+63%

 

 

 

 

Underlying EBITDA*

£4.5m

£2.2m

+104%

Loss from Italy

£0.0m

(£1.0m)

 

EBITDA

£4.5m

£1.2m

+258%

 

 

 

 

Profit before taxation

£2.5m

£0.1m

+2,284%

 

 

 

 

Earnings per share

2.80p

0.10p

+2,630%

Adjusted earnings per share**

4.58p

2.48p

+85%

 

 

 

 

Interim dividend declared

1.30p

1.10p

+18%

 

Period highlights:

·      Record revenue performance with NGR for the period up 63%

·      Record EBITDA performance, up 258% on H1 15

·      Italy on track to break even in the year

·      75% of revenues from regulated and taxed markets

·      Mobile casino driving growth and represents 50% of total casino revenues (2015: 42%)

·      Interim dividend increased by 18% to 1.3p (2015: 1.1p)

·      Successful launch of new 32Red Casino responsive, multi-platform website in April 2016 delivering encouraging results

·      Confident of meeting management expectations for the full year

 

Post period end events:

·      Extended contract with innovative commercial terms agreed with digital gaming solutions partner, Microgaming, effective from 1 November 2016. The new arrangement enables 32Red to develop its strength in regulated markets, whilst retaining its broad appeal across the industry.

·      Exclusive licence to promote casino games for ITV flagship brands

·      British Horse Racing sponsorship agreements:

New three year deal to sponsor prestigious King George Christmas Meeting at Kempton

Renewal of sponsorship of the All Weather Championship for next two years

New three year deal to sponsor Haydock Park's Group 1 Sprint Cup

 

 

Ed Ware, CEO commented:

"We are delighted to report a record revenue and profitability performance for 32Red in the first half of 2016 which has been driven by strong growth across our business and brands.

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.

Current trading remains strong with like-for-like NGR up 4% on very strong comparatives  in the second half to date. Underpinned by our strong online gaming brands and exciting customer-focused offer, the Board remains confident of meeting its expectations for the full year."

 

Enquiries:

32Red Plc

Tel:  +00 350 200 49396

Ed Ware, CEO

 

Jon Hale, CFO

 

 

 

Numis Securities Limited

Tel: +44 (0) 20 7260 1000

Michael Meade (Nominated Adviser) 

 

Chris Wilkinson (Corporate Broking)

 

Michael Burke (Corporate Broking)

 

 

 

Hudson Sandler

Tel: +44 (0) 207 796 4133

Alex Brennan

[email protected]

Bertie Berger

 

 

 

*Underlying EBITDA is Earnings before Interest, Tax, Depreciation and Amortisation derived from the established business i.e. excluding results from its new Italian operations and is stated before share option costs and exceptional items.

** Adjusted Earnings Per Share is calculated on Underlying Earnings adding back exceptional items, share option costs and amortisation and uses the weighted average number of ordinary shares for diluted earnings as calculated in note 3 to this interim statement. 

 

 

32Red Plc

 

Performance Summary

We are pleased to report that 32Red has delivered another record-breaking performance in the first half of the year, with Net Gaming Revenue (''NGR'') for the six months ended 30 June 2016 (the "period") increasing by 63% to £30.4m (H1 2015: £18.6m). This very strong outcome was driven by a combination of accelerated organic growth in our core business (+32% on 2015), and a healthy contribution from Roxy Palace acquired in July 2015. This strong revenue growth has resulted in a 104% increase in underlying EBITDA* to £4.5m (H1 2015: £2.2m).

 

The 32Red brand continues to increase its market share in Italy and the business remains on track to break even in 2016, incurring minimal losses in the first half (H1 2015 loss: £1.0m). After accounting for this investment, reported EBITDA for the period totalled £4.5m (H1 2015: £1.2m). Further to the acquisition of Roxy Palace in 2015, amortisation of intangible fixed assets increased to £1.4m for the period (H1 2015: £0.7m) and resulted in Profit before Taxation of £2.5m (H1 2015: £0.1m).

 

Earnings per share totalled 2.80p (H1 2015: 0.10p) and Adjusted Earnings per Share** totalled 4.58p (H1 2015: 2.48p). In line with the strong performance of the business and the Board's confidence in the outlook for 32Red, the Company today declares an interim dividend of 1.3p per share (H1 2015: 1.1p) to be paid on 28 October 2016 to all shareholders on the Company's share register at the close of business on 30 September 2016.

 

Trading Overview

 

The 32Red Casino brand represents 70% of total revenues and continues to achieve strong growth (+24%) in direct response to accelerated, returns-driven marketing investment. The launch of a new responsive multi-platform website in April 2016 has also improved retention levels and new player conversion rates. Mobile remained the fastest growing platform both in terms of new player recruitment and revenue, growing by 45% against the prior year and now representing 50% of total 32Red Casino revenues (2015: 42%).

 

The Roxy Palace Casino was acquired in July 2015 and was successfully migrated to our Gibraltar operations by the end of 2015. The Roxy Palace brand will benefit from the roll out of the new responsive website in the second half of the year, before marketing investment is increased to expand this brand.   
 

The growth in revenues from Other Products is the direct result of increased trade in the sports betting product. In May 2016, the Company renewed its commercial arrangement with Kambi Sports Solutions, allowing further funds to be allocated to marketing of the sports betting product. Sport betting, whilst still a small part of the overall group, continues to offer a strategic opportunity for 32Red both in terms of customer acquisition, cross-sell and retention, and the Company will continue to exploit opportunities to leverage the 32Red brand in this important vertical.

 

On 29 August 2016, 32Red aired its first TV advert promoting the sports book and the Company has signed a twelve month deal to advertise around live sport on Sky, including a number of half-time adverts in live Premier League football matches. On 13 May 2016, the Company announced a three year agreement to sponsor Leeds United Football Club, providing 32Red with shirt sponsorship, access to Leeds United's global fan base and extensive brand visibility throughout the club's iconic Elland Road stadium as well as across its digital and media platforms. This sponsorship complements our existing shirt sponsorship of Rangers Football Club who have returned back to top flight football in Scotland.

 

Italian net gaming revenues derived via www.32Red.it were up 33% on 2015, in line with the Board's expectations and the Company continues to examine ways to broaden its product offering in this competitive but attractive market.

 

 

 

Post period end events - extended contracts with key partners

 

Post the period end 32Red is delighted to have signed a number of key strategically important contracts that will help the Company to deliver its stated growth strategy.

 

1.  Microgaming - 32Red is very pleased to announce today that it has agreed a new and extended contract with innovative commercial terms with digital gaming solutions partner, Microgaming. Under the new agreement, which is effective from 1 November 2016, the relationship is extended for a further five years and cements Microgaming as 32Red's central and major technical and content supplier. The new deal also gives 32Red the flexibility to utilise alternative providers in order to enable the Company to ensure it is able to attract and retain the full spectrum of casino players to the 32Red brand.
 

2.   ITV - the Company is pleased to announce an extension of its exclusive licence with ITV Brand Extensions allowing the Company to operate an ''Ant & Dec Saturday Night Takeaway'' slot machine game in addition to the current, successful  ''I'm a Celebrity...Get Me Out Of Here!'' game. Both games use popular iconography, theme tunes and features to bring the excitement of the shows to thrilling casino games that are available exclusively to 32Red customers over the three year licence agreement.
 

3.   British Horse Racing - The Company continues to take opportunities to extend the 32Red brand profile within British Racing. As a founding member of the British Horseracing Authority's Authorised Betting Partner (''ABP'') initiative, the Company is pleased to be able to secure high profile races as and when they appear on the open market. As announced earlier this month, we are delighted to have agreed a three year deal to become the sponsor of the historic King George VI Chase run on Boxing Day. The race has been won by horses that raise the profile of all concerned beyond the sport itself; Desert Orchid and Kauto Star being two such famous winners of the race.

 

In addition to the King George Winter Festival, 32Red has renewed commitment to the sponsorship of the All Weather Championship for the next two seasons, meaning that more than 250 races will carry 32Red sponsorship from October to April each year. All Weather Champions Finals Day is staged on Good Friday and enjoys terrestrial TV coverage on a sports-hungry day. On 23rd August 2016, 32Red announced a three year deal to sponsor Haydock Park's prestigious Group 1 Sprint Cup run this year on 3rd September. In 2017 and 2018 the sponsorship extends across a three day meeting with all races branded 32Red and culminating in the 32Red Sprint Cup on the Saturday.

 

    

Current Trading and Outlook

32Red has excellent operational momentum which has been strengthened by the signing of these key strategic contracts post the period end. The Company has a clear growth strategy, which is underpinned by a relentless focus on putting our customers first and providing the most enjoyable online gaming experience possible. We continue to invest to achieve this, with targeted marketing strengthening the appeal of the 32Red brand and new product development, including the launch of our new, responsive and multi-platform 32Red Casino website in April 2016, which is delivering encouraging results.

 

The second half of the year has started strongly with like-for-like net gaming revenues for the first eleven weeks of the second half up 4% on the same period in 2015 and up 9% including the contribution from Roxy Palace. In the Company's Trading Update on 29 July 2016, the Company reported that in the first 27 days of July, 32Red has experienced an unusually weak casino gross win margin, which has since started to return to more normal levels. Building on the strong first half of the year and with continued growth in the second half, the Board is confident of delivering its expectations for the full year.

 

 

*Underlying EBITDA is Earnings before Interest, Tax, Depreciation and Amortisation derived from the traditional business i.e. excluding results from its new Italian operations and is stated before share option costs and exceptional items.

** Adjusted Earnings Per Share is calculated on Underlying Earnings adding back exceptional items, share option costs and amortisation and uses the weighted average number of ordinary shares for diluted earnings as calculated in note 3 to this interim statement. 

 

32Red Plc

Statement of profit or loss and other comprehensive income

for the six months ended 30 June 2016

 

 

 

 

 Notes

 

Six months ended

30 June 2016

 

Six months ended

30 June 2015

 

 

 

 

 

Unaudited

 

Unaudited

 

 

 

 

 

£

 

£

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Gaming Revenue

 

 

 

30,382,952

 

18,584,571

Cost of sales

 

 

 

(22,863,632)

 

(14,258,192)

Gross Profit

 

 

 

7,519,320

 

4,326,379

Administrative expenses

 

 

(3,051,005)

 

(3,079,720)

EBITDA before share option costs and exceptional items

 

 

4,468,315

 

1,246,659

Share option costs

 

 

(325,237)

 

(240,617)

Depreciation and Amortisation

 

 

(1,628,596)

 

(898,856)

Operating Profit before exceptional items

 

 

2,514,482

 

107,186

Exceptional items

2

 

(57,963)

 

(19,039)

Profit before tax and finance costs

 

 

2,456,519

 

88,147

Finance income

 

 

 

8,942

 

15,280

Profit before taxation

 

 

 

2,465,461

 

103,427

Taxation

4

 

(117,595)

 

(27,852)

Profit and total comprehensive income
for the period

 

2,347,866

 

75,575

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share (p)

 

 

 

 

 

 

Basic

 

3

 

2.80p

 

0.10p

 

Diluted

 

3

 

2.59p

 

0.10p

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

                   

 

32Red Plc

 

 

 

 

 

 

 

 

Consolidated Statement of Changes in Equity

 

 

 

 

 

for the six months ended 30 June 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity attributable to equity holders of 32Red Plc

 

 

 

 

 

 

 

 

 

 

 

 

 

Share

 capital

Share

 premium

Share options reserve

 

Employee

Benefit

Trust (EBT)

reserve

Retained earnings

 

Total

equity

 

 

£

£

£

£

£

 

£

 

 

 

 

 

 

 

 

 

Balance 1 January 2015

 

147,360

447,218

876,159

(156,576)

4,431,951

 

5,746,112

Share options charge

 

-

-

240,617

-

-

 

240,617

Shares issued for cash

 

-

-

-

-

-

 

-

Shares acquired by the EBT

 

-

-

-

(100,000)

-

 

(100,000)

Shares transferred from the EBT

 

-

-

-

10,914

(4,539)

 

6,375

Dividends paid

 

-

-

-

-

(1,031,571)

 

(1,031,571)

Transactions with owners

 

-

-

240,617

 

(89,086)

(1,036,110)

 

(884,579)

Profit and total comprehensive income for the period

 

-

-

-

 

-

75,575

 

75,575

Balance 30 June 2015

 

147,360

447,218

1,116,776

 

(245,662)

3,471,416

 

4,937,108

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance 1 January 2016

 

167,360

6,827,218

1,410,956

(480,272)

3,429,880

 

11,355,142

Share options charge

 

-

-

325,237

-

-

 

325,237

Shares issued for cash

 

2,835

-

-

-

-

 

2,835

Shares acquired by the EBT

 

-

-

-

(10,050)

-

 

(10,050)

Shares transferred from the EBT

 

-

-

-

139,907

(21,894)

 

118,013

Dividends paid

 

-

-

-

-

(3,932,963)

 

(3,932,963)

Transactions with owners

 

2,835

-

325,237

 

129,857

(3,954,857)

 

(3,496,928)

Profit and total comprehensive income for the period

 

-

-

-

 

-

2,347,866

 

2,347,866

Balance 30 June 2016

 

170,195

6,827,218

1,736,193

 

(350,415)

1,822,889

 

10,206,080

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                             

 

32Red Plc

Consolidated Statement of Financial Position

as at 30 June 2016

 

 

 

 

Six months ended

30-Jun

2016

Unaudited

 

Six months ended

30-Jun

2015

Unaudited

 

Year

 ended

31-Dec

2015

Audited

 

 

 

Notes

£

 

£

 

£

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Non-current

 

 

 

 

 

 

 

 

Intangible assets

 

5

7,603,644

 

2,155,593

 

8,814,700

 

Property, plant & equipment

 

6

1,029,813

 

1,027,593

 

1,061,493

 

 

 

 

8,633,457

 

3,183,186

 

9,876,193

 

Current

 

 

 

 

 

 

 

 

Trade and other receivables

 

 

2,254,613

 

843,447

 

1,393,243

 

Cash and cash equivalents

 

 

7,916,695

 

6,716,912

 

10,255,347

 

 

 

 

10,171,308

 

7,560,359

 

11,648,590

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

18,804,765

 

10,743,545

 

21,524,783

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

Equity attributable to shareholders of 32Red Plc

 

 

 

 

 

Called up share capital

 

 

170,195

 

147,360

 

167,360

 

Share premium

 

 

6,827,218

 

447,218

 

6,827,218

 

Share option reserve

 

 

1,736,193

 

1,116,776

 

1,410,956

 

EBT Reserve

 

 

(350,415)

 

(245,662)

 

(480,272)

 

Retained earnings

 

 

1,822,889

 

3,471,416

 

3,429,881

 

Total equity

 

 

10,206,080

 

4,937,108

 

11,355,143

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Non-current

 

 

 

 

 

 

 

 

Trade and other payables

 

 

-

 

-

 

-

 

 

 

 

-

 

-

 

-

 

Current
Social Security and other taxes

Trade and other payables

 

 

76,858
8,521,827

 

73,881
5,732,556

 

 

82,774

10,086,866

 

Current and total liabilities

 

 

8,598,685

 

5,806,437

 

10,169,640

 

 

 

 

 

 

 

 

 

 

Total equity and liabilities

 

 

18,804,765

 

10,743,545

 

 

21,524,783

 

 

                                                                                                           

 

32Red Plc

Consolidated Statement of Cash Flows

for the six months ended 30 June 2016

 

 

 

 

 

 

Six months ended

30-Jun

2016

Unaudited

 

Six months ended

30-Jun

2015

Unaudited

 

 

 

 

 

 

 

£

 

£

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities

 

 

 

 

 

 

 

Profit for the year

 

2,347,866

 

75,575

 

Interest adjustments

 

 

 

 

(8,942)

 

(15,280)

 

Amortisation

 

 

 

 

1,411,567

 

681,769

 

Depreciation

 

 

 

 

217,029

 

217,087

 

Change in trade and other receivables

 

 

(861,370)

 

86,668

 

Change in trade and other payables

 

 

(1,570,956)

 

862,248

 

Share option costs

 

 

 

 

325,237

 

240,617

 

 

 

 

 

 

 

1,860,431

 

2,148,684

 

Investing activities

 

 

 

 

 

 

 

 

Additions to intangible assets

 

 

(200,511)

 

(932,217)

 

Additions to tangible assets

 

 

 

(191,064)

 

(438,742)

 

Disposal of Property, Plant & Equipment

 

 

 

5,715

 

-

 

 

 

 

 

 

 

(385,861)

 

(1,370,959)

 

Financing activities

 

 

 

 

 

 

 

 

Shares issued for cash

 

 

 

2,835

 

-

 

Proceeds on disposal of shares by the EBT

 

 

 

 

118,013

 

6,375

 

Shares acquired by the EBT

 

 

 

 

(10,050)

 

(100,000)

 

Dividends paid during the period

 

 

 

 

(3,932,963)

 

(1,031,571)

 

Net interest received

 

 

 

 

 

8,942

 

15,280

 

 

 

 

 

 

 

(3,813,223)

 

(1,109,916)

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents, beginning of period

 

10,255,347

 

7,049,103

 

Net increase in cash and cash equivalents

 

(2,338,652)

 

(332,191)

 

Cash and cash equivalents, end of period

 

 

7,916,695

 

6,716,912

 

                           

 

 

Notes:

 

1.         Accounting policies

 

The consolidated annual financial statements are prepared in accordance with the measurement principles of applicable International Financial Reporting Standards (''IFRSs'') as adopted by the EU. The accounting policies have remained unchanged from the previous year, as set out in the Annual Report for the year ended 31 December 2015, available on www.32redplc.com, except for the application of the following standards, effective from 1 January 2016:

 

 

·      Clarification of Acceptable Methods of Depreciation and Amortisation (Amendments to IAS 16 and IAS 38)

·      Annual Improvements to IFRSs 2012-2014 Cycle - various standards

·      Disclosure Initiative (Amendments to IAS 1)

 

 

The accounting policies as at 31 December 2015 and the standards effective 1 January 2016 have been applied in the preparation of the interim financial results, with the exception of some of the disclosures required by IAS 34 Interim Financial Reporting.


 

2.         Exceptional item

 

 

 

Six months ended

 

Six months ended

 

 

 

30-Jun

 

30-Jun

 

 

 

2016

 

2015

 

 

 

£

 

£

 

GBGA legal costs

 

57,963

 

19,039

 

 

During the period, legal costs of £57,963 (H1 2015: £19,039) were incurred in respect of legal and strategic advice received in connection with the UK Government's recently introduced remote gambling regulatory regime.


 

3. Earnings per share

 

Basic earnings per share have been calculated by dividing the net results attributable to ordinary shareholders by the weighted average number of shares in issue during the relevant financial periods.

 

The weighted average number of shares used for basic earnings per share amounted to           83,851,399 shares (2015: 73,680,056).

 

To calculate the diluted earnings per share figure, the weighted average of employee share options and awards made under the Long Term Incentive Plan expected to vest has been added. This number represents management's best estimate at 30 June 2016, which is also used for calculating employee payments relating to share based payment transactions. At 30 June 2016, the weighted average number of share options expected to vest was 6,958,259 (2015: 5,714,366).

 

 

 

 

 

 

 

Six months ended

 

Six months ended

 

 

 

 

 

 

30-Jun

 

30-Jun

 

 

 

 

 

 

2016

 

2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net profit attributable to ordinary shares

 

 

 

£2,347,866

 

£75,575

 

 

 

 

 

 

 

 

 

 

Weighted average number of ordinary shares:

 

 

 

 

 

 

 

For basic earnings

for diluted earnings

 

 

83,851,399

 

73,680,056

 

 

 

90,809,658

 

79,394,422

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

 

 

 

2.80p

 

0.10p

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

 

 

 

2.59p

 

0.10p

 

 

 

 

 

 

 

 

 

 

Weighted average number of ordinary shares for basic earnings

 

83,851,399

 

73,680,056

 

Weighted average number of share options

 

 

 

 

6,958,259

 

5,714,366

 

Weighted average number of ordinary shares for diluted earnings

 

90,809,658

 

79,394,422

 

                       

 

4.       Taxation

 

 

 

 

Six months ended

 

Six months ended

 

 

 

30-Jun

 

30-Jun

 

 

 

2016

 

2015

 

 

 

£

 

£

 

 

 

 

 

 

 

Tax on profit on ordinary activities

 

117,595

 

27,852

 

 

 

 

5.      Intangible assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brand and

Domain names

 

Player

database

 

Website

Development

 

 

Software
licences

 

Total

 

 

£

 

£

 

£

 

£

 

£

Cost

 

 

 

 

 

 

 

 

 

 

At 1 January 2016

 

4,595,327

 

4,569,161

 

110,428

 

1,744,690

 

11,019,606

Additions

 

11,135

 

-

 

8,944

 

180,432

 

200,511

At 30 June 2016

 

4,606,462

 

4,569,161

 

119,372

 

1,925,122

 

11,220,117

 

 

 

 

 

 

 

 

 

 

 

Amortisation

 

 

 

 

 

 

 

 

 

 

At 1 January 2016

 

595,418

 

537,611

 

101,728

 

970,149

 

2,204,906

Charge for the period

 

595,998

 

463,939

 

11,937

 

339,693

 

1,411,568

At 30 June 2016

 

1,191,416

 

1,001,550

 

113,665

 

1,309,842

 

3,616,473

 

 

 

 

 

 

 

 

 

 

 

Net book value

 

 

 

 

 

 

 

 

 

 

At 30 June 2016

 

3,415,046

 

3,567,611

 

5,707

 

615,280

 

7,603,644

At 31 December 2015

 

3,999,909

 

4,031,550

 

8,700

 

774,541

 

8,814,700

At 30 June 2015

 

1,062,043

 

56,911

 

5,647

 

1,030,992

 

2,155,593

 

 

 

 

6.         Property, plant and equipment

 

 

 

 

 

 

 

 

 

 

 

Motor Vehicles

 

Computer and Office Equipment

 

Leasehold Improve-ments

 

Total

 

 

£

 

£

 

£

 

£

 

Cost

 

 

 

 

 

 

 

 

At 1 January 2016

221,089

 

2,514,562

 

222,604

 

2,958,255

 

Additions

78,543

 

112,521

 

-

 

191,064

 

Disposals

(90,585)

 

-

 

-

 

(90,585)

 

At 30 June 2016

209,047

 

2,627,083

 

222,604

 

3,058,734

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

 

 

 

 

 

 

At 1 January 2016

130,252

 

1,741,209

 

25,301

 

1,896,762

 

Charge for the period

21,631

 

175,973

 

19,425

 

217,029

 

Disposals

(84,870)

 

-

 

-

 

(84,870)

 

At 30 June 2016

67,013

 

1,917,182

 

44,726

 

2,028,921

 

 

 

 

 

 

 

 

 

 

Net book value

 

 

 

 

 

 

 

 

At 30 June 2016

142,034

 

709,901

 

177,878

 

1,029,813

 

At 31 December 2015

90,837

 

773,353

 

197,303

 

1,061,493

 

At 30 June 2015

67,873

 

804,088

 

155,632

 

1,027,593

 

 

 

 

7.         Post Balance Sheet Event - Material contracts

 

On 21 September 2016, the Company confirmed that it has agreed a new and extended contract with innovative commercial terms with digital gaming solutions partner, Microgaming.  Under the new agreement, which is effective from 1 November 2016, the relationship is extended for a further 5 years and cements Microgaming as 32Red's central and major technical and content supplier. The new deal also gives 32Red the flexibility to utilise alternative providers in order to enable the Company to ensure it is able to attract and retain the full spectrum of casino players to the 32Red brand.


This information is provided by RNS
The company news service from the London Stock Exchange
 
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