888 reports 29% H1 revenue rise to $528m

888 has posted a 29% constant currency annual revenue rise to $528.4m (£384.2m) for the first half of 2021. Releasing its financial results for the H1 period, the operator revealed gross profit growth of 40% to $352.4m. Company adjusted EBITDA rose 39% year-on-year (YoY) to $97.4m, with the firm reporting a 48% rise in net cash to $114.4m. At a divisional level, B2C gaming revenue increased by 25% to $428.8m on a constant currency basis, while B2C sports betting revenue rocketed 71% to $80.3m. Total B2C division revenue came in at $509.1m following a 31% uptick. In contrast, B2B revenue only grew by 1% during H1 to $19.3m, thanks in part to “good progress” in the firm’s bingo network. The percentage of revenue generated from regulated and taxed markets amounted to 75% of total group revenue during H1.

UK revenue surged 57% during the period on a reported basis to $222.6m, benefitting from favourable foreign exchange movements but also from what 888 described as “solid market share progress”. Revenue from the Italian market grew by 82% YoY, with Italian customer numbers rising 11% despite higher-than-normal customer acquisition growth during the same period of last year. US and Americas revenue jumped 60% to $65.1m, although US revenue rose by just 7% to $10.7m, with growth in gaming offsetting lower-level sportsbook gains. 888 referenced a reduction in investment in the 888sport brand in the region due to the impending launch of the Sports Illustrated Sportsbook, which should go live in Colorado later this month. European market revenue (excluding the UK and Italy) increased by 9% to $165.8m with triple-digit rises in Romania (138%) and Ireland (126%). Portugal (47%) and Spain (13%) also proved big winners during the period. However, this growth was offset by the continued headwinds of regulation in the German market. 888 CEO Itai Pazner said: “We made significant strategic progress in the first half, securing a long-term strategic partnership with Sports Illustrated to strengthen our position in the US. “We also continued to execute our product leadership plan, delivering further improvements in the usability and quality of products across sports and gaming, all the while maintaining our persistent focus on delivering our safer gambling priorities. “The board remains confident that, with 888’s advanced technology, products and diversification across markets, the group remains well positioned to deliver further strategic progress during 2021 and beyond,” he added. 888’s share price was up by more than 3% to 422p in early trading on the London Stock Exchange.