888 Delivers a strong half-yearly performance

Gibraltar-based online gambling group 888 Holdings plc continued to please investors Wednesday with a strong set of half-yearly results showcasing an impressive performance by its online poker and casino interests.

Financial highlights in the report included:

* H1-2013 revenue increased 7 percent to US$200.1 million (H1 2012: US$186.4 million)

* B2C revenue increased 8 percent to US$177 million (H1 2012: US$163.6 million)

* Adjusted EBITDA increased 7 percent to US$38.6 million (H1 2012: US$36 million)

* Adjusted EBITDA margin maintained at 19.3 percent

* PAT increased 205 percent to US$32.1 million (H1 2012: US$15.7 million)

* Adjusted EPS increased 37 percent to 9.9 cents per share (H1 2012: 7.2 cents)

* Interim dividend of 3 cents per ordinary share (H1 2012: 2.5 cents)

Operational highlights included:

* Strong performance driven by Casino and Poker:

* Casino up 13 percent to $94.1 million; Poker up 13 percent to $46.8 million; Bingo doiwn 18 percent at $22.1 million and emerging offdering up 13 percent at $13.9 million.

* Poker reached number four in global PokerScout rankings

* Excellent casino performance driven by CRM activity

* Agreement with Kambi Sports Solutions to develop 888sport app

* Mobile now fastest growing channel across all products representing 17 percent of UK revenue

* Excellent success in Spain and Italy with further growth opportunities

* JV agreement signed in March with Avenue Capital Group creating the All American Poker Network (AAPN) to launch comprehensive B2C gaming offering in US market upon regulation.

* Approval as Interactive Gaming Service provider by the Nevada Gaming Commission

Recent developments are listed as:

* Agreement signed in August with Caesars Interactive Entertainment (CIE) through the All American Poker Network (AAPN) joint venture with Avenue Capital allowing 888 to offer own-branded Poker and Casino products in New Jersey, subject to required regulatory approvals

Brian Mattingley, CEO of 888, described the results as “excellent” and noted that record revenue growth in H1 was driven by the continued strength of 888’s core Casino and Poker products and its ability to maximise revenue through exceptional platforms and marketing systems.

“We are making good progress in new markets with tremendous success in Spain and Italy where we see further opportunities for growth,” Mattingley said.

“These experiences have given us further confidence in our ability to capitalize on the exciting US opportunity which continues to develop and we believe our strategy and partnerships ensure that we are well positioned to maximize market share as that market becomes regulated.”

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