Poker star performer in 888 Q2s
Operator records year-on-year increase for a seventh successive quarter.
The continued strong performance of 888’s B2C operations saw the operator record a seventh successive quarter of year-on-year revenue growth, the company has announced in its results for the three months ended 30 June.
While revenues from the operator’s B2B arm Dragonfish dropped slightly (down 5% to $12m), B2C revenues rose 21% year-on-year to US$80m, contributing to H1 group revenue of $186m.
Poker was the star performer in what is a traditionally quieter time of year, with a 59% year-on-year revenue increase seeing the vertical contribute one quarter of the group’s B2C revenues.
Part of this figure stemmed from June’s launch in the Spanish market, with the operator noting that is has “Built a significant market share in Spain, with the poker offer currently number two in the Spanish market.”
Chief executive Brian Mattingley said: We have the right product offering and back office capabilities to grow and sustain market share, as indicated by the success in building a significant market share in the newly regulated Spanish poker market.”
The period also saw 888 enter into a partnership with gaming machines manufacturer and Nevada licence applicant WMS Gaming, with a view to the latter offering poker to its US casino clients using 888’s platform initially on a freeplay basis, and for real-money once regulation allows.
This deal followed a separate US-facing B2B deal with Caesars Interactive Entertainment, a non-exclusive agreement, and In April this year the operator’s chief executive Brian Mattingley told eGaming Review he believed the company would be the first operator to enter a regulated US market.
Poker has been in the ascendancy for 888 ever since former CEO Gigi Levy predicted in March 2011 that it would rise to sit among the top five sites and networks for cash game liquidity, and analyst Ivor Jones of Numis said: “It is hard to be specific about the reasons for the success of 888’s poker.”
“We have played it extensively (and unsuccessfully) on both desktop and tablet and it is visually attractive, stable and offers a good choice of games and tournaments. We expect the stand out success will continue,” added Jones.
Jones retained his ‘buy’ recommendation, as did analyst Simon French of Panmure Gordon. French cited “Optionality on US market regulation” in his note this morning.