888 profits soar 30% in record-breaking year
Growth in casino and poker contribute to US$401m revenue milestone as expansion into US and Spain also pays off
888 Holdings recorded a 30% year-on-year increase in profits and record-breaking revenues for 2013 after a strong performance from key verticals and expansion into new markets.
The operator posted a profit before tax for the 12 months ended 31 December 2013 of US$53.2m, an increase of nearly one third from $40.8m in the previous year.
Total revenues for the year were 888’s highest yet after a 7% increase from $375.8m in 2012 to $400.5m last year, including a 5% rise in revenues to $48.3m from its B2B arm Dragonfish. The company’s B2C business accounted for the majority of revenues and increased 7% to $352.2m.
During the latter part of the year 888 became the only operator to be present in all three regulated US states last year after launches in Nevada, Delaware and New Jersey.
“2013 was a very busy but also exceptionally rewarding year for 888,” Brian Mattingley, 888’s chief executive, said.
“I am delighted to report that we have delivered record-breaking revenue and increased our profitability, driven by our strong brands, exceptional platforms and best-in-class marketing systems,” he added.
888 Casino was the company’s best performing vertical last year following a 15% year-on-year increase in revenues to $190.4m, up from $165.5m compared to the previous 12 months after strong growth across Europe.
The operator also bucked the industry trend of declining poker revenues with a 7% year-on-year rise to $93.6m and the business climbing to number two in PokerScout’s global poker liquidity rankings.
Bingo continued to underperform for the operator after 16% year-on-year fall in revenues which led to 888 restructuring the team earlier this year including a number of redundancies and staff relocations.
Last year also saw the operator expand into new markets and Mattingley said he was particularly pleased with the operator’s results after dedicating “significant energy and resources” into its US launch.
Revenues from Europe and Americas grew 14% and 22% year-on-year respectively in 2013, while UK revenues only increased 1% to $163.3m.
“2013 was a year of strategic development for 888 as we positioned ourselves to take advantage of significant opportunities as new markets became regulated and opened up to online gaming and high-growth mobile channels developed,” Richard Kilsby, 888 chairman, said.
“During 2013 we completed a number of strategic partnerships which positioned us strongly in the emerging US regulated market. Our distinct approach gives us significant financial firepower to take advantage of this opportunity and we are encouraged by the progress to date in Nevada, New Jersey and Delaware.”
888 shares were up more than 9% in morning trading on the back of the positive results.