888 year-end results: Dragonfish stars

888’s EARNINGS before interest tax depreciation and amortisation (EBITDA) are down almost a fifth on the year before, the company’s 2009 year-end figures show.

Business-to-business (B2B) arm Dragonfish, however, grew revenue by 33% with a series of key deals.

EBITDA of US$45.6m (€33.7m, £30.3m) was 18% below the US$55.7m the company recorded in 2008, although slightly above market expectations when 888 released its preliminary 2009 results last month.

The strong performance was in contrast to performance at Dragonfish, launched in March, which recorded revenue up by a third to US$51.3m, from US$38.6 the year before. The group does not report separate profit lines.

Dragonfish client wins included Harrah’s Interactive Entertainment; the new online arm of US casino giant Harrah’s; Linden Lab, an MMOG business for which Dragonfish will provide payments processing and Bwin Italia, as well as deals to open new territories including South Africa with Phumelela, the Balkans with Loper Gate and China, Central and South America with mobile gaming business Probability.

As reported on EGRmagazine.com earlier today, Levy said that 888 is “constantly looking” at spinning off Dragonfish as a separate company in the light of its success.

The other star performer was the group’s small emerging markets offering, which blasted revenue 83% to US$25.1m, from US$13.8m.

888’s total operating income dipped 6% to US$246.7m, from US$262.6m in 2008, which the company blamed on the economic downturn and foreign currency conversions. Profit before tax dipped 10% to US$34.6m, from $48.6m in 2008.

Other highlights included 888’s acquisition of Wink Bingo in December, which 888 will use to launch a push on bingo outside the UK likely to include the Nordic countries.

Real money registered customer accounts rose 22% in number to 7.1m, from 5.8m.