32red Share Discussion Threads

[mortimer7] 05/3/2015 11:15

Solooiler, if I'm wrong fair enough. These were my sources of info.

www.gov.uk : Gambling Tax Reform: rules from 1 December 2014:-
GBD, PBD and RGD from 1 December 2014
From 1 December 2014, HM Revenue and Customs (HMRC) changed how these gambling duties were taxed from ‘place of supply’ to ‘place of consumption’.
RGD is charged on a gaming provider’s profits from remote gaming played by a UK person. A gaming provider is the person with whom the player has a contract (or similar arrangement) for play.

From William Hill annual report on 27th Feb 2015:
On 1 November 2014, Online was licensed by the Gambling Commission to provide online gambling services in the UK. On 1 December 2014, POCT was implemented, charging 15% gross profits tax on Online’s UK revenues

[solooiler] 05/3/2015 10:38

Nay Mortimer you are wrong ;0|. its uk revenues not uk gross profs.

[paleje] 05/3/2015 10:26

IC positive view this morning:-

Online gaming specialist 32Red (TTR) enjoyed a strong performance during 2014 when revenues rose by 26 per cent, boosted by strong growth in its Italian business, and reported cash earnings rose by 41 per cent to £5.4m. The full year dividend is 33 per cent higher at 2.4p and the company finished the year with £7m in the bank. Trading in the first two months of the year has been running 35 per cent ahead of last year. Buy.

[simon42] 05/3/2015 08:39

They are avoiding discussing the impact of the tax. It's 15% of revenue or pushing £5.5m in the case of 32Red. Can this be right? That would mean 32Red are expecting to lose >£1m after tax in 2015. Feel free to correct as it doesn't seem right but I think this is the case. The company should answer the question.

[jim digriz] 05/3/2015 08:20

Good results, continuing to hold this and some similar companies. Cost per new player high but I'm hoping that will come down as the whole industry wrestles with the POC tax.

That being said I'd hoped to see 1 month of the POC tax itemised in there somewhere to get an idea of the effect, it kicked in 1 December and these are results to 31 December . I believe it's only paid quarterly but it is presumably in there somewhere as a liability? But note 8 neatly explains their tax charge, all Gibraltar 10% corporation tax. Anyone know where it is in the accounts? Trade liabilities?

DYOR BYOB

Jim

[fozzie] 05/3/2015 08:17

Trading in 2015 to date has been very strong across the Group's portfolio with January and February net gaming revenues up 35% on the same period in 2014. While it is too early to gauge the lasting effects of the new licensing regime on the UK market, there are fewer brands legally accessing the UK marketplace and 32Red has experienced strong trading over the last three months.

While regulatory changes and additional tax burdens affect profitability and may pose a threat to some operators, we believe that they provide opportunities for 32Red. The Board believes that 32Red is well positioned to exploit such opportunities to accelerate the growth of the business, whether this growth is achieved organically or via acquisition, or both. The Board looks forward to updating shareholders on progress at the interim trading update in July 2015 - Ed Ware

[fozzie] 05/3/2015 08:16

Despite the recent introduction of a new UK regulatory environment, we have achieved a strong start to the new financial year and I am confident in our ability to continue to grow the business for the long term and look forward to the future with confidence - Ed Ware

[simon42] 05/3/2015 08:09

But the point of consumption tax wipes out pretty much all of their hard work as far as I can tell! Happy to be corrected. This is over valued by some margin once this new tax is factored in. The company refuses to discuss it in detail and it pretty much just gets mentioned but not fairly discussed. Is the 32red business model a failure with this tax in place? It ain't great.

[harriiiiddda] 05/3/2015 07:47

Stunning update happy holder!

[paleje] 05/3/2015 07:40

And plenty of cash. Very confident report especially considering the uncertainty that's dogged the sector.

[saj3] 05/3/2015 07:08

Excellent results!! 5th year of growth No debt

[marles] 25/2/2015 22:13

Bit of a worry they are not mentioning the POC tax which knocks 15% off revenues, this is quite easy for anyone to work out how much it will reduce profits by. Just take 15% of gross revenues and take it off profits expected this year.
They are happy to talk about some changes but not others.
I personally sold out and will await the full update for clarification on how they will make up the shortfall. If it was not for the POC implications, I quite like the company.

[lozler] 18/2/2015 14:34

Love mentioning the longer term charts, but have a look at the month chart here, looks very well poised to get to 85p in the coming months.

[daikoku] 16/2/2015 22:08

Hi JeffCranbourne, could you do me a favour and FRO?

[jeffcranbounre] 16/2/2015 19:51

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[harriiiiddda] 16/2/2015 18:08

Still cheap!

[fozzie] 16/2/2015 14:37

Anybody got any juice on why this is going up like this? Happy for it to continue but cannot see an IC tip lifting this from 38 to near 60?

[mortimer7] 16/2/2015 10:37

Good to see fridays uptrend continue this morning. Also well above average trading volume so far today. Perhaps being helped by imminent good results, IC tip and focus on sector via Wm Hill/888 deal.

[m.t.glass] 13/2/2015 09:00

I've heavily pruned the header content. Several of the sponsorship references and images were out of date.

[paleje] 13/2/2015 08:33

One of IC's tips of the week last night.

[momosu] 12/2/2015 10:11

This one's trending up - someone keen enough for a £50,000 buy early doors

[stewpot3] 12/2/2015 09:43

Spotlight back on this sector with the W.H deal. My guess is that these will be a target sometime this year or next.

[tarzan2222] 26/1/2015 21:31

Forget chart analytics and company fundamentals, this is plain old fashioned trader sentiment. How many bought on the way up to 90 and hung on through the dramatic fall. So it rockets 25% in a week - there's gonna be a ton of traders that will dump this like a shot. Personally, I think it will continue it's upward trajectory (eventually) - something caused it to go up in the first place.