888’s Trading Update Showed 14% Growth despite Q4 16% Slump
Online betting and gaming group 888 Holdings released today a post-close trading update for the 12 months ended December 31, 2021, posting stable growth driven by product strategy and continuous market expansion.
Double-Digit Growth
888 Holdings announced its revenue grew by 14% driven by taxed and regulated markets which slightly increased its share of total revenue to 74%, as its performance in the UK, Romania, and Portugal was partially offset by a decline in Germany. In comparison, regulated gaming markets contributed to 73% of total 2020 revenues.
“I am pleased to report another year of record revenues alongside these important strategic milestones, delivering double-digit revenue growth despite a very tough comparative period.”
Itai Pazner, CEO, 888 Holdings
Pazner was referring to the fourth quarter which could not surpass the respective three-month period in 2020 and posted 16% less revenue, $214 million, as compared to $255 million, in line with the board’s expectations. The quarter was also impacted by the exit from the Netherlands, while the initial positive progress of SI Sportsbook in Colorado was offset by investments to engage with customers.
“This performance reflects the continued success of our data-driven investments and execution against our product-leadership focus that delivers ongoing improvements in the usability, quality and safety of our sports betting and gaming products.”
Itai Pazner, CEO, 888 Holdings
Across the business divisions, B2C revenue posted a 15% increase year-over-year to reach $934 million as compared to $814 million in 2020, mainly driven by casino operations which generated 24% more, while sports betting increased by 4% due to the regulatory impact of the group leaving the Netherlands market. B2B operations accounted for another $38 million, or 8% growth on $35 million reported in the prior year.
2021 Strategic Developments
The year also saw key business developments like the ongoing acquisition of non-US assets of William Hill that is expected to close in Q2 2022 and the strategic partnership with Sports Illustrated magazine in the US that saw the launch of SI Sportsbook powered by 888’s in-house sports betting platform.
888 also managed to offload its B2C and B2B bingo business to free resources and focus on its B2C platform and growth strategies in the US. The sale of the bingo business for up to $50 million is expected to close in the first half of 2022.
The third business quarter saw the group launch its 888sport brand under a local license in Germany to underscore once again the importance of the group’s in-house sports betting platform.
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