888 reports record revenue of $273m amid 56% Q1 increase

888 has posted a 56% year-on-year increase in revenue for Q1 2021 to $272.5m (£196.3m). In a trading update for the first three months of 2021, the FTSE 250 operator revealed B2C revenue of $262.8m (£189.3m) on a constant currency basis, a rise of 57% when compared to the same period of 2020. B2B revenue also increased during the quarter, up 20% year-on-year to $9.7m (£6.9m). 888 attributed the rise to product enhancements, the realisation of long-term positive customer acquisition trends and its continued expansion across regulated markets.

Casino revenue, which accounts for 72% of overall revenue, grew by 68% during the quarter to $195.2m, while sports betting revenue leapt by 53% during the same period to $41.6m. Online poker revenue rose by 10% to $14.7m, alongside an 8% lift in online bingo revenue to $11.4m. The operator successfully rolled out its new Spectate sports betting platform across a number of key markets in Q1, including the UK, with plans underway to expand this to the US later in the year. Revenue from regulated markets increased by 3% year-on-year and represented more than three-quarters (76%) of overall revenue for the group, driven by growth in the UK, Italy, Spain, Romania and Portugal. 888 also reported a 27% uptick in active FTDs and an 18% rise in funded active players during Q1. “The strong momentum in 2020 has continued into the first quarter of 2021, with a new all-time-high for FTDs and revenue,” 888 CEO Itai Pazner said. “Although year-on-year trends were partly inflated by the disruption to sporting events at the end of the prior year period, with increased demand for digital entertainment during this period across our main markets. “We are particularly pleased with the strong performance of our new proprietary 888sport platform, which is already servicing the majority of bets while maintaining strong customer service levels and highly effective risk management and trading. “We remain very pleased with the strong momentum in the business and the continued positive customer reaction to our suite of new products and innovations. “As a result and underpinned by 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. Assessing the results, Peel Hunt analyst Ivor Jones wrote: “Trading is now, in Q2 2021, running up against tough comps and we believe that 888 will stop reporting quite such eye-catching headline revenue growth figures, at least for a while. “However, it continues to make progress in its newer geographic markets, and Romania and Portugal are highlighted in today’s statement. “This growing diversity, plus 888’s attraction as a partner for a US business, encourages us to reiterate our ‘Buy’ recommendation and increase our sum-of-the-parts-based target price from 400p to 500p,” he added. 888 shares were up 4% to 447p in early trading on the London Stock Exchange.