888 Holdings report good progress

Online gaming firm 888 Holdings revealed a 7 percent revenue increase in its audited full year 2013 financial results Tuesday along with a 56 percent increase in dividends.

Financial Highlights for the year ending December 31, 2013 include:

–   Revenue increased 7 percent to US$ 401 million (2012: US$ 376 million)

–   B2C Revenue increased 7 percent to US$352 million (2012: US$330 million)

–   Adjusted EBITDA* increased 13 percent to US$ 76 million (2012: US$ 67 million)

–   Adjusted EBITDA* margin increased to 18.9 percent (2012: 17.8 percent)

–   Profit before tax increased 30 percent to US$ 53 million (2012: US$ 41 million)

–   Final dividend at 4.0 cents per ordinary share per policy (2012: 4.5 cents), and due to strong performance the Board is recommending an additional one-off dividend of 7.0 cents per share (2012: 2.0 cents), bringing the total dividend per share for the year to 14.0 cents per share (2012: 9.0 cents)

–   Adjusted EPS increased 19 percent to 16.6 cents per share (2012: 13.2 cents)

–   As at 31 December 2013, 888 had 15.5 million Casino, Poker and Sport real money registered customer accounts, representing an increase of 19 percent from 31 December 2012

–   Number of B2C Casino and Poker active customers was up 16 percent to 602 000 (2012: 520 000)

Sector revenue:

–   B2C Casino revenue was up 15 percent to US$ 190.4 million (2012: US$ 165.5 million)
–   B2C Poker revenue was up 77 percent to US$ 93.6 million (2012: US$ 87.5 million)
–   B2C Bingo revenue down 16 percent to US$ 43.7 million (2012: US$ 51.8 million)
–   Total B2C revenue was up 7 percent while total B2B revenue was up 5 percent.

In terms of geographical split, the United Kingdom accounts for 41 percent, Europe 40 percent and Americas 12 percent of 888’s total revenues.

Operational highlights during the period included the company’s strong performance in its core Casino and Poker products, an improved 888Sport offering, excellent progress in Spain and a successful launch in regulated US States.

Looking ahead, 888 said it is ideally positioned to gain from increased liquidity following the interstate compact signed between Delaware and Nevada States.  The average daily revenue for the year to date is currently up 8 percent against the prior year.

Brian Mattingley, chief executive of 888, said:

“2013 was a very busy but also exceptionally rewarding year for 888. I am delighted to report that we have delivered record-breaking revenue and increased our profitability, driven by our strong brands, exceptional
platforms and best-in-class marketing systems.

“We delivered excellent progress in our core markets and built on momentum in Spain where we have quickly developed a market-leading position. Casino delivered another strong performance and we made further market share gains in Poker, advancing to number two in the PokerScout global rankings at the year end. We have also significantly strengthened our offering in Sport, which is delivering positive results. All of this was achieved whilst devoting significant energy and resources on preparing 888 for our successful launch in the regulated US market.

“I am delighted with 888’s achievements in 2013 which were made possible by the amazing hard work, dedication and talent of our team. I would like to take this opportunity to thank each of them for their fantastic
efforts during the year.

“We have started 2014 well, with average daily revenue up more than 8 per cent in the year to date, and look forward to the year ahead with continued confidence.”

Richard Kilsby, Chairman of 888 added: “I am confident we have the right strategy to deliver a truly satisfying experience for our customers and strong, sustainable, long-term earnings growth for our shareholders.”

Shares in 888 Holdings rose around six percent today on the back this report and the announcement of a raise in total dividend payouts to 14 cents per share, a 56 percent increase over last year.

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