888 Holdings’ Interim Report Revealed Record Profit in H1 2021
888 Holdings, an online gaming group based in Gibraltar and traded on the London Stock Exchange (LSE), released today its interim 2021 earnings report posting record profit for the first half of the year.
Revenue Overview
888 Holdings registered, for the six months ending June 30, 2021, revenue of $528.4 million, an increase of 39.4% compared to the $379.1 million in the first six months of 2020. This was driven mainly by the B2C segment, which posted $509.1 million.
The strong momentum from 2020 continued into the first half of 2021, with growth driven primarily by regulated markets, where we believe ongoing market share gains continue to reflect our product-leadership strategy, highly effective data-driven marketing, and our excellent content.”
Itai Pazner, CEO, 888 Holdings
As all major regulated markets accounted for double-digit growth in the segment, B2C gaming revenue amounted to $428.8 million and B2C betting revenue generated another $80.3 million, to register increases of 35.2% and 82.3% year-over-year, respectively, and contribute to an aggregate B2C revenue increase of 40.9%.
B2B revenue grew by 8.3% to reach $19.3 million, compared to $17.8 million in H1 2020, primarily due to the progress 888 achieved within its bingo network.
The UK market accounted for $222.6 million, an increase of 56.4% year-over-year, and maintained its position as 888’s core market, contributing to 42% of the first half revenue total. Revenue in the Europe, Middle East and Africa (EMEA) region grew by 9.4% to reach $165.8 million, 31% of the group’s total.
Italy, accounted separately from EMEA, generated $67.9 million for an 81.6% increase year over year, and contributed another 13% to 888’s revenue total.
888’s business in the Americas brought in another 12% of the revenue total, jumping by 60.3% to $65.1 million, but operations in the rest of the world suffered a setback, falling by 5.4% to $7 million.
Costs and Expenses
With gaming taxes and duties at $100.5 million, other sales-related costs of $75.5 million, marketing expenses of $170.9 million and operating costs of $84.1 million, adjusted earnings before interest, tax, depreciation and amortization (EBITDA) came to $97.4 million, an increase of 38.9% compared to H1 2020.
With another $18.1 million in amortization and depreciation costs, $11.6 million in exceptional item spend and $5.7 million of share benefit charges, 888 ended the first half of 2021 with an operating profit of $62 million, an increase of 14.7%.
Further accounting for finance expenses of $4.1 million and $7.2 million of tax, the group registered a profit of $50.7 million, up 11.4% compared to the respective 6-month period in 2020. In accordance with 888’s dividend policy, the Board of Directors declared an interim dividend of $0.045 per share.
Looking forward to the remainder of 2021, 888 maintains a cautious outlook as the past two months showed signs of growth slowing down due to the end of lockdowns and re-opening of retail and leisure venues.
The board remains mindful of the tougher comparables in the upcoming fourth quarter, a period that enjoyed an exceptionally strong performance in both betting and gaming revenues during 2020.”
Itai Pazner, CEO, 888 Holdings
888 concluded that full-year revenue and adjusted EBITDA are now expected to be slightly ahead of prior expectations.
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