888 signs off 2021 with 14% revenue upsurge despite Q4 decline
London-listed operator cites Netherlands exit and increased US promotional spend in SI Sportsbook push among factors for faltering final three months
888 has reported a 16% year-on-year (YoY) drop in its Q4 2021 total group revenue, which fell during the period to $214m (£157m). Delivering its trading update for the final three months of 2021, the London-listed operator revealed a 17% YoY decrease in its B2C operational divisional revenue slumping to $205m. 888 highlighted a “strong comparative period” as a rationale behind the double-digit decline, with regulatory and compliance headwinds including its Netherlands exit among factors playing their part. In contrast, B2B division revenue rose by 10% year on year during Q4 to $9m from a prior Q4 2020 high of $8m. 888 has cited “positive initial progress” for its fledgling Sports Illustrated (SI) Sportsbook in the debut US market of Colorado, but suggested revenue gains were being offset by an increased promotional spend arising from customer acquisition.
At a full year level, 888’s combined revenue rose by 14% to $972m, buoyed in part by growth in regulated markets across Europe. Regulated market operations contributed 74% of total group revenue during FY2021, with 888 reporting strong numbers in the UK, Italy, Romania and Portugal, growth which offset declines arising from the German market. B2C revenue rose 15% YoY during full year 2021 to $934m, supplemented by a 24% growth spike in online casino as well a 4% increase derived from sports betting. The lower-than-expected sports growth, 888 suggested was impacted by regulatory changes, including the aforementioned Netherlands exit. 888’s B2B revenue jumped 8% year on year during 2021 to $38m. 888 CEO Itai Pazner suggested 2021 was a year of “outstanding strategic progress” capped by the acquisition of the William Hill International business, the sale of the groups bingo business and its pivot towards the SI Sportsbook in the US market. “I am pleased to report another year of record revenues alongside these important strategic milestones, delivering double-digit revenue growth despite a very tough comparative period,” Pazner said. “This performance reflects the continued success of our data-driven investments and execution against our product-leadership focus that delivers ongoing improvements in the usability, quality and safety of our sports betting and gaming products,” he added.