888 Holdings turns in strong quarterly results

Online gaming provider 888 Holdings presented strong Q2/2012 results this week showing strong double digit growth across the board with the exception of its bingo offering and Dragonfish subsidiary.

Key Financial Highlights for the Q2/2012 period ending June 30, 2012 include:

– Group revenue US$92 million (Q2/2011: US$79 million), an increase of 17 percent y-o-y

– Revenue B2C US$80 million (Q2/2011: US$66 million), an increase of 21 percent y-o-y

– Revenue B2C Casino US$41 million (Q2/2011: US$36 million), an increase of 15 percent y-o-y

– Revenue B2C Poker US$20 million (Q2/2011: US$13 million), an increase of 59 percent y-o-y, primarily boosted by ongoing product improvements, targeted marketing and effective CRM

– Revenue B2C Bingo at US$13 million (Q2/2011: US$13 million), stable y-o-y

– Revenue B2C Emerging Offering at US$6 million (Q2/2011: US$5 million), an increase of 27 percent

– As at 30 June 2012, 888 reports 12.1 million Casino, Poker and Sport real money registered customer accounts, representing an increase of 26 percent since 30 June 2011-

– Number of active customers B2C Casino and Poker at 505,000 (Q2/2011: 342,000), a 48 percent increase compared to Q2/2011

– Quarterly revenue B2C per active Casino and Poker customer was US$121, a 14 percent decrease compared to Q2/2011

– Quarterly revenue B2C per active Casino customer was US$221, a 1 percent decrease compared to Q2/2011

– Quarterly revenue B2C per active Poker customer was US$53 a 3 percent decrease compared to Q2/2011

– Dragonfish: Revenue B2B at US$12 million (Q2/2011: US$12 million), a decrease of 5 percent year-on-year

The company is upbeat on its performance in the newly regulated Spanish market and the strategic agreement it signed with WMS during the quarter .

H1/2012 Results for the period ending June 30, 2012 include:

– Group revenue up 21 percent to US$186 million (H1/2011: US$154 million)

– Overall Revenue B2C up 25 percent to US$164 million (H1/2011: US$131 million)

– Revenue B2C Casino up 20 percent to US$83 million (H1/2011: US$69 million)

– Revenue B2C Poker up 72 percent to US$41 million (H1/2011: US$24 million)

– Revenue B2C Bingo down 2 percent to US$27 million (H1/2011: US$28 million)

– Revenue B2C Emerging Offering up 20 percent to US$12 million (H1/2011: US$10 million)

– Dragonfish revenue B2B down 1 percent to US$23 million (H1/2011: US$23 million)

Brian Mattingley, Chief Executive Officer of 888 Holdings commented:

“While the second quarter of the year saw a return to historical seasonal revenue patterns, revenue increased 17 per cent y-o-y supported by targeted marketing campaigns and market-leading customer relationship management. We have the right product offering and back office capabilities to grow and sustain market share, as indicated by the success in building a significant market share in the newly regulated Spanish poker market.”

The firm said the start of its third quarter trading is in line with expectation delivering average daily revenue during the first 24 days of July 10 percent above those recorded in July 2011.

It expects to see the effect of seasonality in the remainder of the third quarter, and the impact of the Olympic Games in London remains unknown.

As at 20th July 2012 the Group had US$64 million of cash and cash equivalents and US$45 million liabilities to customers.