888 Holdings, an online gaming group operating out of Gibraltar, released a post-close trading update, posting for the 3 months ended June 30, 2021, strong growth in revenue from B2C operations.
B2C Revenue Increases 21%
888 generated in the second quarter of 2021 $247 million in B2C operations, 21% more compared to the reading for the same 3-month period in 2020. The B2B business remained unchanged, accounting for $10 million in revenue.
Reflecting on the result, 888 said the strong momentum from the first quarter continued in the second, which, added to favorable exchange rates, resulted in figures slightly above what the Board of Directors expected.
“I am pleased to report that the strong momentum from the first quarter of 2021 continued into the second quarter, albeit with the year-on-year growth rate moderating in light of stronger comparables from the prior year.”
Itai Pazner, CEO, 888 Holdings
Mindful of the potential impact from higher than usual seasonality in summer sports, re-opening of retail and leisure venues across a number of international markets, shown by a 20% decrease in average daily revenues in the UK since its retail and leisure sectors re-opened on May 17, as well as upcoming regulatory and compliance changes, 888 warned that subsequent quarters may not produce the same results.
Driven by the continued success of 888’s product-leadership strategy, customer acquisition levels, and expansion into regulated markets, the group accounted for revenue growth of 10% year-over-year, measured at constant currency.
“Growth was 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
Revenue at constant currency from B2C operations increased by 11% in Q2 2021 compared to the second quarter of 2020, led by Sports with 94%, which had far less number of sporting events in Q2 2020, and Casino with 13%, while poker and bingo generated less, to highlight the exceptional results these verticals posted in the prior period.
Regulatory Headwinds in Germany
Geographically, 888 posted a strong performance in the UK, Italy, Spain, Romania, and Portugal, while the impact from regulatory changes in Germany caused an adverse effect. The group gained a sports betting license from the German regulator and will increase its investment in the market.
“In addition to strong trading across our core European markets, we made significant strategic progress during the period in the attractive US market, where we announced a long-term strategic partnership with Sports Illustrated. We look forward to launching SI Sportsbook as a key pillar of our strategy to drive increased growth in the US.”
Itai Pazner, CEO, 888 Holdings
The group considers the strategic alliance with Sports Illustrated as a platform that will deliver growth in the US and will continue to invest in product and marketing to supports its long-term plans.
The company is set to release its interim results for the first 6 months ended June 20, 2021, on September 1, 2021. The Board of Directors expects the full-year adjusted EBITDA to be slightly higher than in 2020.