Strong 2016 for 888 Holdings

In audited annual financial results for the year ended December 31, 2016, 888 delivered a robust performance with a 13 percent rise in revenue driven by an increase in mobile.

Key financial highlights for the period include:

– Revenue up 13 percent to US$520.8 million (2015: US$462.1 million); on a constant currency basis* revenue increased 18 percent.

– B2C revenue increased 15 percent to US$460.2 million (2015: US$399.4 million); on a constant currency basis B2C revenue increased 20 percent.

– Casino revenue increased 21 percent to US$279.3 million (2015: US$230.6 million); on a constant currency basis Casino revenue increased 26 percent.

– Revenue from Sport increased 49 percent to US$51.9 million (2015: US$34.8 million); on a constant currency basis Sport revenue increased 58 percent.

– Adjusted EBITDA increased 12 percent to US$90.2 million (2015: US$80.6 million); on a constant currency basis Adjusted EBITDA increased 24 percent to US$100 million.

– Adjusted EBITDA margin remained stable at 17.3 percent (2015: 17.4 percent) or 18.3 percent at constant currency

– Strong free cash flow, allowing for dividend payments during the year of US$56.6 million (2015: US$53.5 million).

– Basic earnings per share increased 74 percent to 14.4¢ (2015: 8.3¢)

– The Board recommended a final dividend of 5.1¢ per share (2015: 4.0¢ per share) due to the strong results and additional one-off 10.5¢ per share bringing the total for the year to 19.4¢ per share (2015: 15.5¢ per share)

Operational Highlights include:

– Mobile continues to drive growth across verticals and, in the UK, increased to represent 60 percent of UK B2C revenue (2015: 47 percent)

– Continued growth in Casino with 27 percent increase in active players and a 23 percent increase in first time depositors

– Active Sports players increased 49 percent and first time depositors increased 52 percent

– 45 percent revenue growth in Spain, making it the second largest market for the Group

– Continued progress in Italy supported by launch of Sport in Q1 2016 driving a 66 percent increase in revenue

– Poker first time depositors up 6 percent

– Strong progress in Denmark where the Group launched in H2 2015 as well as in 888’s newest regulated territory, Romania

– 23 new skins added to the Dragonfish Bingo network

Itai Frieberger, chief executive officer of 888, commented:

“2016 was another fantastic year for 888 during which we continued to deliver very strong organic revenue and profit growth.

“This was again underpinned by further outstanding progress in Casino, Sport and across regulated markets. 888’s further expansion in the UK, Spain and Italy is a strong demonstration of the Group’s ability to drive excellent growth and build leading market positions across regulated markets as the industry continues to head in this direction.

“The Board continues to see a number of significant growth opportunities for 888 both in new and existing markets and we look forward to another exciting year of progress.”

The momentum has continued into the new fiscal year with current trading reportedly yielding over 11 percent above the previous year in constant currency.

The board of directors of 888 has recommended the payment of a final dividend comprising 5.1 cents per share plus an additional one-off 10.5 cents per share, on the back of the strong performance of the business in 2016.

Together with the interim dividend paid in October 2016, this totals 19.4 cents per share for the year.