888’s full-year revenues up 4% on strong sportsbook growth
London-listed firm posts 2017 revenues of US $541.8m following a 45% year-on-year increase from its sports betting arm
888 Holdings this morning reported a 4% year-on-year rise in 2017 revenues to US$541.8m, driven by strong double-digit growth from the operator’s sports betting division.
The London-listed firm’s online betting arm recorded a 45% rise in revenues to $75.5m for the 12 months ended 31 December 2017, while casino increased 4% to $293.9m.
Total B2C revenue ($486.6m) for the 12-month period was up 6% year-on-year, despite an 8% decrease in poker revenues ($77.9m) and a 6% fall in bingo revenues ($39.3m).
Meanwhile, B2B revenue declined 9% year-on-year to $55.2m.
CEO Itai Frieberger says today’s results demonstrated “888’s resilience and agility”
“This very robust outcome was achieved despite the Group’s withdrawal from certain markets during the year and demonstrates 888’s resilience and agility that is underpinned by first-class technology and an outstanding team,” Itai Frieberger, CEO of 888, said.
“The Group has continued to reap the rewards of its investments in recent years in several growth markets including Spain and Italy,” he added.
The market withdrawals refer to 888’s departure from Poland, Australia, Slovenia, Slovakia and the Czech Republic. The operator reported a 26% rise in revenues from regulated markets, excluding the UK.
The overall growth from 888’s consumer-facing business helped the operator to an adjusted EBITDA of $100.7m, up 12% year-on-year compared to the $90.2m recorded in 2016.
However, profit before tax slumped 68% year-on-year to $18.8m after a exceptional charges of $45.3m in respect of potential VAT relating to operations in Germany prior to 2015.
888 said it was now “considering potential courses of action” in Germany, including a petition to the German Federal Constitutional Court, as well as assessing the status and breadth of its offerings in the market.
“888 delivered a solid set of results, delivering against expectations from a year ago, despite having to contend with FX headwinds, tightening regulation in the UK and the withdrawal from a number of markets,” Simon Davies of Canaccord Genuity said.
888’s share price stood at 295.80 on the London Stock Exchange at the time of writing.