888 partners with CIE for New Jersey online gambling

The European online gambling group 888 Holdings is to extend its partnership with Caesars Interactive Entertainment to cover online poker and casino games under its own brand in New Jersey when that market opens to online gambling later this year, the company reported Tuesday in a trading update on its second quarter 2013.

Q2 and H1 2013 Key Performance Indicators highlighted:

* Agreement signed with Caesars Interactive Entertainment (CIE) through the Group’s All American Poker Network (AAPN) joint venture with Avenue Capital allowing 888 to offer own-branded poker and casino products in New Jersey, subject to required regulatory approvals

* Q2 Group revenue at US$97 million (Q2 2012: US$92 million), an increase of 5 percent year on year

* Q2 revenue B2C at US$85 million (Q2 2012: US$80 million), an increase of 6 percent year on year

* Q2 revenue B2C Casino at US$47 million (Q2 2012: US$41 million), an increase of 14 percent year on year supported by growth in newly regulated markets coupled with successful customer retention operations

* Q2 revenue B2C Poker at US$22 million (Q2 2012: US$20 million), an increase of 12 percent year on year demonstrating a continued ability to provide a recreational healthy poker environment

* Record Group revenue in H1 2013 of US$200 million (H1 2012: US$186 million), an increase of 7 percent year on year

* H1 2013 Revenue B2C at US$177 million (H1 2012: US$164 million), an increase of 8 percent year on year

* 535,000 active B2C Casino and Poker customers as at 30 June 2013 (30 June 2012: 505,000), a 6 percent increase year on year

* As at 30 June 2013, 888 had 14.4 million Casino, Poker and Sport real money registered customer accounts, representing an increase of 19 percent since 30 June 2012

Brian Mattingley, chief executive officer 888 Holdings, said:

“The Group has enjoyed excellent growth, particularly in Casino where a combination of strong results in Spain and Italy and very successful marketing campaigns have driven up revenue in Q2 by 14 percent year on year.

“We remain focused on preparing our platforms and marketing for the incredibly exciting US opportunity and we are delighted to announce today the agreement we have signed with Caesars Interactive Entertainment through our AAPN joint venture with Avenue Capital.

“This is an important development in our US strategy which will allow 888 to offer 888-branded poker and casino products in New Jersey,subject to required regulatory approvals. We are extremely well positioned in the US and are working with the regulators in Nevada, Delaware and New Jersey as these three states become ready to open.”

Turning to current trading, Mattingley said that the board is confident it will meet full year market expectations:

“The third quarter of 2013 has begun in line with our expectations, reflecting historical seasonal patterns. Daily average revenue during the first 33 days of the quarter is comparable to the previous year. Our performance is led by Casino with Bingo continuing to be a challenging and competitive market.

“We now have a new sports book provider on board and we are seeing good growth in 888sport, an area we remain committed to improving.

“As at 2nd August 2013 the Group had US$87 million of cash and cash equivalents and US$52 million liabilities to customers.”

Breaking the 888 second quarter numbers down, B2C revenues reached US$85 million – up 6 percent, with contributions as follows:

* Revenue B2C Casino at US$47 million (Q2 2012: US$41 million), an increase of 14 percent

* Revenue B2C Poker at US$22 million (Q2 2012: US$20 million), an increase of 12 percent

* Revenue B2C Bingo at US$10 million (Q2 2012: US$13 million), a decrease of 23 percent

* Revenue B2C Emerging Offering at US$6 million (Q2 2012: US$6 million), a decrease of 2 percent

* Number of active customers B2C Casino and Poker at 535,000 (Q2 2012: 505,000), an increase of 6 percent compared to Q2 2012

* Number of active customers B2C Casino at 186,000 (Q2 2012: 185,000), an increase of 0.5 percent compared to Q2 2012

* Number of active customers B2C Poker at 410,000 (Q2 2012: 378,000), an increase of 9 percent compared to Q2 2012

* Quarterly revenue B2C per active Casino and Poker customer was US$129 (Q2 2012: US$121), a 7 percent increase compared to Q2 2012

* Quarterly revenue B2C per active Casino customer was US$250 (Q2 2012: US$221), a 13 percent increase compared to Q2 2012

* Quarterly revenue B2C per active Poker customer was US$55 (Q2 2012: US$53) a 3 percent increase compared to Q2 2012

On the business to business front, Dragonfish delivered revenues of US$12 million (Q2 2012: US$12 million), an increase of 2 percent compared to Q2 2012.

Half year KPIs for the Group included:

* Revenue up 7 percent to US$200 million (H1 2012: US$186 million)

* Revenue B2C up 8 percent to US$177 million (H1 2012: US$164 million)

* Revenue B2C Casino up 13 percent to US$94 million (H1 2012: US$83 million)

* Revenue B2C Poker up 13 percent to US$47 million (H1 2012: US$41 million)

* Revenue B2C Bingo down 18 percent to US$22 million (H1 2012: US$27 million)

* Revenue B2C Emerging Offering up 13 percent to US$14 million (H1 2012: US$12 million)

Dragonfish reported B2B reevnbues for the half year up a marginal 1 percent to US$23 million (H1 2012: US$23 million)