888 maintains momentum in H1-2018

Online gambling group 888 Holdings posted its H1-2018 performance numbers Thursday, highlighting the following:

* Group revenue up 1 percent to US$273.2 million (H1 2017: US$270.1 million);

* B2C revenue up 2 percent to US$246.7 million (H1 2017: US$242.6 million);

* Maintained momentum in regulated markets (but not in the UK) excluding the UK revenue increased by 30 percent led by Spain and Italy;

* Casino revenue up by 10 percent to US$161.0 million (H1 2017: US$146.7 million);

* Casino revenue excluding UK increased by 24 percent;

* Sports revenue up by 11 percent to US$37.5 million (H1 2017: US$33.7 million); Sport revenue excluding UK increased by 34 percent;

* Bingo revenue dropped by 11 percent to US$17.6 million (H1 2017: US$19.7 million) reflecting heightened regulatory scrutiny in the UK;

* B2B revenue fell by 4 percent to US$26.5 million (H1 2017: US$27.5 million);

* Release of an exceptional provision of US$22.4 million in respect of a legacy VAT matter in Germany;

* Adjusted EBITDA up by 10 percent to US$52.4 million (H1 2017: US$47.6 million); EBITDA for the period was US$70 million (H1 2017: – US$7.3 million loss);

* Adjusted EBITDA margin increased by 160bp to 19.2 percent (H1 2017: 17.6 percent);

* Adjusted Profit before tax grew by 13 percent to US$42.5 million (H1 2017: US$37.6 million) and profit before tax was US$60.1 million (H1 2017: – US$17.3 million loss);

^ Adjusted basic earnings per share increased by 2 percent to 10.5¢ (H1 2017: 10.3¢); basic earnings per share increased to 15.4¢ (H1 2017: loss per share of 5.0¢);

* Interim dividend of 4.2¢ per share (H1 2017: 4.0¢ per share) declared;

Operational highlights included:

* Continued strong momentum in Casino and Sport and European markets (excluding UK) resulted in an increase in new B2C customers and healthy deposit levels;

* Revenue from regulated and taxed markets represented the significant majority of Group revenue at 70 percent (H1 2017: 70 percent);

* Mobile devices continued to drive growth across B2C verticals representing 75 percent (H1 2017: 69 percent) of UK revenue and 62 percent (H1 2017: 54 percent) of worldwide revenue;

* Average active days per Casino player increased 9 percent and average revenue per Casino player increased 7 percent supported by the successful launch in May of Orbit, a new web-based Casino platform, across .com markets

* Continued momentum in Sport with a very strong performance during the FIFA World Cup which continued post the period end;

* Successful launch of 888poker.it in January;

Further investment and development in the US market including:

* Recent launch of 888Sport in New Jersey;

* Extension of 888’s unique interstate poker network to include New Jersey and pool poker players across all three currently regulated US states;

* Two-year contract extension with the Delaware Lottery;

* Extended contract with Kambi, 888’s sportsbook provider, to include the US market in readiness for opportunities presented by repeal of PASPA;

* Significantly enhanced Casino content in New Jersey.

Itai Frieberger, CEO of 888, reported that further progress has been made against the strategic objectives of the group, and that 888 has continued to focus on enhancing compliance and customer protection, delivering growth in regulated markets and product innovation.

“We have maintained strong momentum in Casino and Sport particularly in continental European markets,” Frieberger noted.

“In the UK, we are pleased to report that since the period end we have started to see positive trends in revenue. This follows the proactive and prudent customer protection measures that we have implemented over the last 18 months which have adversely impacted revenue.

“The repeal of PASPA in May was a very exciting development for 888 given our unique experience and established partnerships in the US market. We have continued to invest in our US operations for long-term growth including extending our inter-state Poker network across all three currently regulated states, significantly enhancing our Casino product and, most recently, launching Sports betting in New Jersey.

“We have invested in product innovation to ensure that 888 customers continue to enjoy fresh and differentiated entertainment. In May, we launched ‘Orbit’, an innovative new Casino platform, across our .com markets and we have seen exciting early results. We plan to extend Orbit across a number of major regulated markets during the second half as well as introducing new features to 888Sport and launching ‘Poker 8’, 888’s next generation poker platform.

“The Board continues to believe that 888 is very well positioned for future growth underpinned by our diversification across products and markets, technology leadership and a first-class team. Trading during the second half of the financial year to date has been in line with the Board’s expectations with average daily revenue excluding the UK 6 percent higher year on year, 4 percent lower overall and an encouraging 9 percent increase in Group new customers acquisition. We have several exciting growth opportunities ahead and the Board remains confident that the profit outlook for the full year will be in line with market expectations.”

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