888 continues double-digit revenue growth
Poker continues improvement, while casino also strong in full-year outlook - record quarterly revenues in both verticals.
eGaming Review poker operator of the year 888 continued its strong performance in the vertical, recording a 44% year-on-year revenue increase for the year ended 31 December.
Growth in the fourth quarter came in 31% above the Q4 2011 total at US$24m, while the operator’s other core offering – B2C casino – rose 6% year-on-year in the fourth quarter and 12% for the full-year, with its $165m total representing half of the company’s FY B2C revenues.
Strong comparatives in H2 2011 meant percentage growth in quarters three and four was not as high as in Q1 or Q2, however the fourth-quarter totals for both casino and poker represented record quarterly revenues for the company.
B2B revenues from the Dragonfish offering remained flat and bingo revenues fell 4% compared to FY 2011, however 888’s emerging offering – including sportsbook and social – experienced a 16% year-on-year rise to $25m for the 12-month period.
The impact of the launch of 888’s real-money bingo offering on Facebook, which went live in December, will not be fully seen until Q1 2013, while there remains potential for the operator to launch further products on the social network.
Chief executive Brian Mattingley spoke glowingly of the record quarterly revenues, which also contributed to a record yearly total, and also had praise for the operator’s strength in regulated markets. The company’s performance in newly-licensed jurisdictions prompted analyst Nick Batram of Peel Hunt also issued a ‘Buy’ recommendation, noting: “The company is one of a select few that has proven that it can deliver a credible performance in newly regulated markets.”
Mattingley said: “Our success in Spain and Italy shows that we have the right product and technology led marketing to make significant inroads into new markets, and we will look to repeat that success in other regulating territories.”
Despite pulling out of France last year, 888 has begun strongly in Spain after the first dot.es licences were issued last June, claiming the second-highest poker market share behind PokerStars, while in Italy it has claimed a casino market share of more than 5%.
Analyst James Hollins of Investec reinforced his firm’s ‘Buy’ recommendation on the basis that “There is sufficient evidence to suggest that 888 should remain an industry leader.
“Enormous credit has to be given to the management in continuing to drive growth into the business, focusing on providing phenomenal customer experiences from a market leading product platform,” added Hollins.#
Numis’s Ivor Jones added: “It appears 888 is determined not to pull over and let us take a break. Instead it continues to beat our forecasts and remains thoroughly over-excited about the road map ahead. The final quarter of 2012 went well and 2013 has started promisingly. Shareholders has [sic] better buckle up and cross their legs, they wont be getting out for a while.”