888 reports 10% Q4 revenue rise
Strong end to year sees annual revenues rise 8% powered by a 15% increase in B2C casino
Gibraltar-licensed 888 Holdings has posted double-digit revenue growth for the final three months of 2013 following a strong casino performance and “significant progress” in the US market.
Total revenues for the period ended 31 December 2013 totalled US$107m, a 10% rise on the $97m registered for the corresponding quarter in 2012 and roughly $4m above analysts’ forecasts.
The strong end to the year helped the Group post annual revenues of $401m, which represented a 7% increase on the $376m aggregated across the previous year.
The Q4 performance was predominantly driven by a notable B2C casino performance which saw revenues increase 15% year-on-year to $51m, a rise above that of the average B2C growth figure of 8%.
The advance in casino was attributed to an enhanced product offering, extended regulated markets, advanced CRM initiatives and further mobile penetration.
888’s B2C poker increased 2% to £25m during the quarter while its B2C emerging offering, which includes its recently launched Kambi-powered sportsbook, also grew 2% to $6m.
Meanwhile the Group’s B2B Dragonfish business leaped 22% to $14m over the three months and marked a total increase of 5% to $48m across the 12 months.
The only negative was the continued decline of its B2C bingo vertical, which slumped 4% to $11m in Q4, which resulted in a decrease of 16% across the year.
The results come following a quarter in which the Group launched in both New Jersey and Delaware, making it the only operator to be present in all three regulated US states following September’s Nevada launch.
In addition, the Group also said it had started 2014 well and reported average daily revenues for first 27 days of the year were up 3% on the same period in 2013.
“Our strong result has again been driven by the progress we have made in newly regulated markets as well as a continued excellent performance in casino and further market share gains in poker, where we are now ranked number two in the Pokerscout global rankings,” Brian Mattingley (pictured), 888 chief exec, said.
News of the results saw 888’s share price rise 5p to 144p in early morning trading. Panmure Gordon financial analyst Simon French reiterated his Buy recommendation and indicated the Group will now attempt to further leverage its sportsbook product.
“888 finished 2013 strongly and this has continued into 2014, a year which should see more focus on sports due to the new Kambi tie-up and the football World Cup in Brazil.
“Evidence of profitable progress in the US is limited but the group is well positioned to capitalise on further state regulation,” he said.
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