888 reports record revenue after 52% rise during “landmark” 2020

888 has reported a 52% increase in revenue during full-year 2020 to $849m (£608.3m). The London-listed operator revealed B2C revenue grew 53%, rising to $814m, with double-digit growth reported across all key verticals. Casino revenue jumped 63% during the year to $586.8m, while online poker revenue increased by 48% during the same period to $63.1m. Sports betting revenue rose by 36% to $122.1m, while the operator reported a 10% rise in bingo revenue to $42.3m. The performance was partly driven by a 42% increase in new customer acquisition after almost 1.5 million new customers joined 888 last year.

Company adjusted EBITDA rose to $155.6m in 2020, corresponding to an increased adjusted EBITDA margin of 18.3%. 888 also increased its available cash from $96.9m in 2019 to $190m in 2020. The firm’s adjusted net profits rocketed by more than 100% during the period, rising to more than $100m. In 2020, 888 launched its new Poker8 and 888sport proprietary technology platforms across several of the groups’ key operating markets. Revenue from regulated markets increased by 58% year-on-year and represented three quarters (73%) of overall revenue for the group. This increase was due in part to a 63% spike in UK revenue and 69% growth in Italy. In the US, revenue from the group’s New Jersey business rose by 71%, with 888 increasing its overall US presence to seven states. 888 CEO Itai Pazner said: “2020 was a landmark year for 888, with our team navigating the many challenges presented by a global pandemic to deliver record financial results, and significant progress against our strategic priorities. “Our product leadership strategy delivered outstanding results in 2020, with the launch of our groundbreaking Control Centre, our first ever in-house sportsbook and a totally new poker platform. “We welcomed a record number of new members to our brands, nearly one and a half million, with our differentiated products and our big data supporting highly effective marketing. “We enter 2021 with strong momentum, with a record level of customers, and with a positive reaction to our suite of new products and innovations. “As a result, as well as the group’s strengths as a product-centric, responsible and diversified operator, the board believes that 888 has an outstanding platform to deliver continued strategic progress during 2021 and beyond,” Pazner added. Strong trading has continued into 2021, although the operator warned that regulatory and compliance headwinds could reduce revenue by $70m-$100m during the full year. Reflecting on 888’s results, Regulus Partners analyst Paul Leyland suggested the firm’s renewed operational focus and technology investment had paid dividends, resulting in a “broad base of momentum” that had previously eluded the business. “There are three big strategic questions for 888 now which it can at least approach from a position of relative strength (unlike a few years ago),” Leyland wrote. “First, to what extent can it turn betting from a small cross-sell opportunity into a core product driver? “Second, how will it show strategic upside in the US without losing ‘too much’ money or giving away ‘too much’ value (being gaming-led helps here)? “Third, how will the group position itself within the inevitable evolving M&A landscape?” Leyland added. 888’s share price increased by more than 5% in early trading on the London Stock Exchange.