888 Holdings, a sports betting and online gaming group operating out of Gibraltar, released today its trading update for the third quarter of 2021, posting growth in revenue.
Strategic Progress
Reporting on a busy quarter, 888 Holdings saw its group revenue in the three months ended September 30, 2021 rise by 7% compared to the respective three-month period in 2020, despite the very strong growth registered in the respective quarter of 2020. This was mainly due to the tight sporting schedule following the period of coronavirus-related disruptions to sporting events. The number of average daily active players rose 6% year-over-year to further reflect the continued success of 888’s product strategy and investments.
Commenting on the performance, 888 Holdings CEO Itai Pazner outlined the quarter as “a period of outstanding strategic progress” defined by the “transformational acquisition of William Hill International” and the successful launch of SI Sportsbook in Colorado. “This performance reflects the continued success of our data-driven investments and execution against our product-leadership plan that delivers ongoing improvements in the usability, quality and safety of our sports betting and gaming products,” he added.
Significant strategic developments in the quarter for the group were the announced acquisition of non-US assets of William Hill and the launch of the SI Sportsbook brand in partnership with Sports Illustrated (SI) magazine.
Underpinned by our advanced technology, leading products, and strong brands, as well as the increased scale, talent and diversification that the Group will benefit from as a result of its combination with William Hill International, we have a very exciting platform for long-term growth.”
Itai Pazner, CEO, 888 Holdings
Revenues across the Boards
888 Holdings B2C operations in Q3 2021 accounted for $220.3 million, up 7% on the $206.3 million achieved in Q3 2020. B2C Gaming operations posted strong performance, $193.5 million, as compared to $174.6 million in Q3 2020, up 11%, while B2C Betting slumped 15% from $31.7 million to $26.8 million. This was mainly due to the very strong reading in Q3 2020. Revenue from B2C Betting registered 21% growth compared to Q3 2019 to once again underscore the exceptional performance the group posted in the third quarter last year.
Revenue growth in B2C Gaming justified 888’s continuous investment in enhancing user experience by introducing new products, including more than 150 new casino games among which several in-house developed games, content and AI-driven personalization the group believes led to market share gains on the regulated markets of the UK, Spain, Italy and Romania.
B2B revenue increased from $9.3 million in Q3 2020 to $9.6 million in the reported quarter, with moderate growth across US operational segments and bingo.
The division saw 888’s latest poker platform launch in the US via the World Series of Poker (WSOP) brand launched in Pennsylvania in partnership with Caesars Interactive, the online gaming arm of Caesars Entertainment. The brand is expected to go live in the coming weeks in Michigan.
The third quarter also saw a successful launch in Germany under a newly issued sport license.
Looking to the future, the company said the temporary suspension in the Netherlands from October 1, 2021, would have a negative impact of $10 million on next year’s EBITDA as the operating license is expected to be obtained in the second half of 2022.