888 Holdings reports a good H1-2014

Online gambling group 888 Holdings plc has posted its H1-2014 results for the six months ended 30 June 2014, highlighting another successful reporting period that included the following highlights:

* Revenue increased 13 percent to $225.1 million (H1 2013: $200.1 million)

* B2C revenue increased 9 percent to $192.8 million (H1 2013: $177 million)

* B2B revenue increased 40 percent to $32.3 million (H1 2013: $23.1 million)

* Adjusted EBITDA increased 27 percent to $49 million (H1 2013: $38.6 million)

* Adjusted EBITDA margin increased to 21.8 percent (H1 2013: 19.3 percent)

* Profit before tax was impacted by higher expenses and losses from its share of the US joint venture, and decreased 4 percent to $34 million (H1 2013: $35.5 million)

* Cash generated from operating activities increased 22 percent to $46.7 million (H1 2013: $38.3 million)

* Corporate cash net of customer liabilities increased 50 percent to $60 million (H1: 2013 $40 million)

* Interim dividend of 3.5 cents per ordinary share (H1 2013: 3 cents)

* Online casino revenue up 14 percent at $107.6 million

* Online poker revenue up 3 percent at $48.1 million

* Online bingo revenue up 9 percent at $24 million

* Emerging online offering down 6 percent at $13.1 million.

Operational highlights included:

* Record performance driven by strong growth across B2C and B2B lines of business

* Continued development of mobile – driving growth across product verticals

* Casino growth driven by innovative CRM and content

* 888poker continued to buck negative industry trends and maintained number 2 position in global liquidity rankings

* Bingo turnaround delivering results with strong growth from revamped mobile offer

* Sport revenue more than doubled reflecting quality of the improved 888sport product and a successful FIFA World Cup

* Strong market share maintained in Spain in casino and poker

* Further progress in regulated US market as All American Poker Network (AAPN) grows its network and 888 brand build traction

* In February, Delaware and Nevada signed a compact to pool poker liquidity providing an opportunity unique to 888 as the only operator offering its platform in both states

The report notes that Richard Kilsby, non-executive chairman of the group, is to retire following the 2015 AGM, and that chief executive officer Brian Mattingley will step down as CEO to become the group’s executive chairman.

Mattingley will be replaced as CEO by current chief operating officer Itai Frieberger, who will join the Board in January 2015.

Commenting on the H1-2014 results, Mattingley said:

“888 has delivered another excellent set of results in what has again been a record-breaking period for the business. Revenue growth has been driven by strong performances across both our B2C and B2B lines of business which reflects our exceptional brands, technology, marketing and CRM systems as well as the passion of our highly skilled team.

“We have delivered growth across all key product verticals, with Casino the standout performer delivering another period of double-digit growth. We are delighted by the turnaround of our improved Bingo business and 888sport has delivered an outstanding performance by more than doubling revenue year on year reflecting the strength of our re-launched offer.

Whilst the outcome for the full year will be dependent on trading in the second half we continue to look forward with confidence as we further develop the business.”

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