888 Holdings third quarter continues upward trend

Online gambling group 888 Holdings plc has posted its Q3-2013 results, maintaining the upward trend that has been a feature of its quarterly reportage in recent years.

Financial highlights in its current report include:

* Group revenue at US$94 million (Q3 2012: US$92 million), an increase of 2 percent year on year

* Revenue B2C at US$83 million (Q3 2012: US$80 million), an increase of 3 percent year on year

* Revenue B2C Casino at US$45 million (Q3 2012: US$38 million), an increase of 19 percent year on year driven by regulated markets, mobile and product offering

* Revenue B2C Poker at US$22 million (Q3 2012: US$22 million), an increase of 0.4 percent year on year reflecting further market share gains and advancing to third place in global poker rankings.

* Group revenue during the first three quarters of 2013 at US$294 million (2012: US$278 million), an increase of 6 percent year on year

* Revenue B2C during the first three quarters of 2013 at US$260 million (2012: US$244 million), an increase of 6 percent year on year

* Number of active customers B2C Casino and Poker at 498,000 (Q3 2012: 454,000), a 10 percent increase year on year

* As at 30 September 2013, 888 had 14.9 million Casino, Poker and Sport real money registered customer accounts, representing an increase of 19 percent since 30 September 2012

The company’s chief executive officer, Brian Mattingley, said Wednesday:

“I am pleased to report another strong performance with group revenues up year on year primarily driven by casino. We continue to build customer numbers and take market share, reflecting our strong product offer, excellent platforms and marketing systems.

“This quarter has seen further progress in newly regulated global markets. In the US, the launch of the World Series of Poker in Nevada marked the start of our first regulated real money offer in the US and through our AAPN joint venture we have also entered into a partnership with Wynn Interactive for the development and deployment of Wynn’s online offering in New Jersey, Nevada and additional states, as they become regulated.

“Trading is in line with the Board’s expectations and we remain confident in the outcome for the year.”

Group Key Performance Indicators posted by the company for the thrid quarter included:

* Revenue B2C Casino at US$45 million (Q3 2012: US$38 million), an increase of 19 percent

* Revenue B2C Poker at US$22 million (Q3 2012: US$22 million), an increase of 0.4 percent

* Revenue B2C Bingo at US$10 million (Q3 2012: US$13 million), a decrease of 21 percent

* Revenue B2C Emerging Offering at US$5 million (Q3 2012: US$7 million), a decrease of 33 percent

* Active customers B2C Casino and Poker at 498,000 (Q3 2012: 454,000), an increase of 10 percent compared to Q3 2012

* Active customers B2C Casino at 172,000 (Q3 2012: 158,000), an increase of 9 percent compared to Q3 2012

* Active customers B2C Poker at 385,000 (Q3 2012: 349,000), an increase of 10 percent compared to Q3 2012

* Quarterly revenue B2C per active Casino and Poker customer was US$135 (Q3 2012: US$133), a 2 percent increase compared to Q3 2012

* Quarterly revenue B2C per active Casino customer was US$264 (Q3 2012: US$241), a 9 percent increase compared to Q3 2012

* Quarterly revenue B2C per active Poker customer was US$57 (Q3 2012: US$63) a 9 percent decrease compared to Q3 2012

In B2B operations, Dragonfish reported third quarter revenues at US$11 million (Q3 2012: US$12 million), a decrease of 4 percent compared to Q3 2012.

888 also released its stats for the nine months ended September 2013, reporting some negative results:

* Group revenue up 6 percent to US$294 million (2012: US$278 million)

* Revenue B2C up 6 percent to US$260 million (2012: US$244 million)

* Revenue B2C Casino up 15 percent to US$140 million (2012: US$121 million)

* Revenue B2C Poker up 9 percent to US$69 million (2012: US$63 million)

* Revenue B2C Bingo down 19 percent to US$33 million (2012: US$40 million)

* Revenue B2C Emerging Offering down 3 percent to US$19 million (2012: US$19 million)

* Dragonfish B2B revenue down 1 percent to US$34 million (2012: US$34 million)

Management reported that current trading during the first two weeks of Q4-2013 has been stronger than in the previous quarter and the equivalent period in the prior year, especially in Casino.

Daily average revenue for the first 13 days of the quarter is higher by approximately 2 percent than the corresponding period in the previous year.

As at 11th October 2013 the Group had US$100 million of cash and cash equivalents and US$53 million in liabilities to customers.

Mattingley said the board remains confident of continued progress and in meeting full year expectations.