888 posts overall revenue decline
Despite the underwhelming results in overall revenue, the company improved profitability in 2018.
UK.- Online gaming and solutions provider 888 has released its latest financial results, which indicate its performance from 2018. The report details that full-year group revenue decreased by 2% to US$529.9 million, mainly because of regulatory scrutiny and increased competition.
CEO Itai Pazner had already warned that the company would post such results, and the report did not fall behind these estimations, as B2C poker revenue fell 37% to US$49 million and B2C bingo revenue decreased 17% to US$32.4 million.
Revenue in the UK also fell 16%, which contributed to the overall decline, as well as the closure of markets including the Czech Republic and Australia. On the other hand, the company posted a good performance across other regulated markets, mainly in Continental Europe.
Moreover, it also posted progress in the United States, thanks to the strategic acquisition of the remaining 53% interest in the All American Poker Network for US$28.5 million, the launch of 888Sport in New Jersey and the sponsorship of the New York Jets by 888.com. New licences were also obtained in Sweden and Malta.
“Despite headwinds in some areas of the business, the financial performance in 2018 was resilient and we achieved a record EBITDA outcome for the year. The group achieved continued growth across several regulated markets, primarily in Continental Europe, underpinned by good momentum in casino and sport,” said Pezner.
“The positive momentum at the end of 2018 has continued into the first quarter of 2019, with average daily revenue in 2019 to date up 10 per cent compared to Q4 2018 reflecting improvements across major KPIs. In the UK, we are encouraged by the improving trends we began to witness in the latter stages of 2018 and the board is pleased to report that these have continued during the first quarter of the current financial year.
“The group continues to base its success on its unique technology-edge, fantastic team and diversification across products and markets. Underpinned by the strength of 888’s technology and the significant strategic progress made by the Group over recent months, the board continues to see a number of significant growth opportunities for 888 in both new and existing markets. We look forward to another exciting year of progress in 2019.”
