New tech helps 888 trade in line with expectations
The operator’s new Orbit platform has inspired growth in casino across regulated European markets
Online casino operator 888 is trading in line with expectations across its core European markets thanks to the firm’s new Orbit casino platform which launched in May.
In a trading update released this morning, the board is confident that adjusted EBITDA for 2018 will match expectations, with Canaccord Genuity forecasting levels of $107.1m.
The operator’s Orbit platform inspired growth in casino across regulated European market while Poker 8, 888’s new poker platform, is due to begin its phased roll-out in the coming weeks.
888 CEO Itai Frieberger said: “During the period 888 has delivered continued progress against its strategic objectives.
“The Group has continued to focus on driving growth in regulated markets, enhancing compliance, and delivering exciting product innovation.
“888 has maintained its strong momentum in casino and sport, particularly in continental European markets.
“In the UK, we are pleased to update that the initial positive trends in revenue reported at the time of the Group’s half year results have continued.”
Canaccord Genuity’s Simon Davies added: “It has been a challenging year for the online gaming sector, with rising regulatory/tax costs in the UK and an acceleration in the push for regulation across Europe.
“The fact that 888 has achieved FY18 profit targets (set in March 2017) is testament to the strength of its technology, its ability to break into newly regulated markets, and effective management controls.”
888 also strengthened its position in the US market during the second half of 2018 by launching 888sport in New Jersey in September.
Earlier this month, the operator also tied up the acquisition of the All American Poker Network (AAPN), purchasing the remaining 53% share for $28m.
The board believes this acquisition to be an important strategic milestone for 888 that will facilitate the Group’s future growth strategy in the US.
“888 remains very excited by the significant long-term growth opportunities in the US market and, throughout the year, we have made significant operational progress in the region,” added Frieberger.
“The recently announced acquisition of the remaining stake in AAPN places 888 in an even better position to take advantage of the significant growth opportunities in the US and create additional value for our shareholders.”