888 KPIs: Dragonfish saves the day... again
888's total operating income dipped in 2009 and was only cushioned from a more severe fall by its Dragonfish business-to-business (B2B) arm, the company's year-end key performanceindicators (KPIs) reveal, despite a recovery in the last quarter...
888’S TOTAL operating income dipped in 2009 and was only cushioned from a more severe fall by its Dragonfish business-to-business (B2B) arm, the company’s year-end key performance indicators (KPIs) reveal.
Group operating income fell 6% overall to $247m, from $263m in 2008, but the slight fall masks widely different variations in the success of its business to consumer (B2C) and business-to-business divisions.
The B2C arm recorded operating income down more than twice that in percentage terms year-on-year, falling 13% to $195m (2008: US$224m), while Dragonfish’s operating income, by contrast soared 33% to $51m (2008: US$39m).
The B2C group also saw its own internal divergence, with casino operating income falling 13% to US$119m (2008: $137m), mainly as a result of adverse exchange rate movement, and poker a sharp fall of 30% to $52m (2008: US$74m) – in stark contrast to the performance of the company’s small but fast-growing emerging market offering, which recorded operating income of $25m, some 82% up from 2008’s $14m, and driven in large part by 888’s acquisition of Wink Bingo last month.
Other highlights during the period include Dragonfish’s supply deal with Harrah’s Interactive Entertainment, the new online gambling arm of US casino giant Harrah’s, and its e-payments deal with Linden Lab, the creator of the avatar game Second Life.
888 indicated that earnings before interest tax depreciation and amortisation (EBITDA) for FY09 should be in line with consensus of $44.4m.
The year-end figures confirm the pattern already witnessed at the publication of 888’s half-year and third quarter results, when Dragonfish held up poor performance by the B2C division.
However the fourth quarter (Q4) figures, also published today, saw B2C reverse its decline, with a spike in late Q4 net revenue to $67.9m, up 14% YoY against Q4 2008, driven by the core casino B2C offering, which rose 14% to $33.4m.
The emerging offering recorded revenue was also up, blasting revenue 52% year-on-year to $7.3m, while poker at least slowed its decline, dipping 11% to $12.9m.
However Dragonfish remained the star performer, with its Q4 income of $14.3m up 36%.
888 chief executive Gigi Levy said: “Overall, trading during the quarter was strong across the business. Dragonfish continues its impressive growth, and in B2C, casino and emerging offering were particularly strong, with poker also returning to growth quarter on quarter.
“Our positive momentum continues into 2010 and, supported by the successful Wink acquisition and our various business initiatives, we expect to grow the business further during the current year.”
Follow us on Twitter: www.Twitter.com/egamingreview