Casino growth drives 888 profits up 33%
Online casino and a "transformational" year for 888Sport drives 14% increase in revenues as poker flatline
888 Holding’s revenues and profits increased 14% and 33% respectively during 2014 driven by impressive growth in online casino and sportsbook, the company announced this morning.
Total revenues for the 12 months ended 31 December were up from $401m (£268m) to $455m (£304m), while adjusted EBITDA increased from $76m (£51m) to $101m (£68m) during the period. Profit before tax grew 28% to $67.9m (£45m).
The firm revealed that almost half of revenues (44%) were derived from the UK, with 38% coming from Europe and 12% from its US operations.
Revenues from 888’s B2C arm increased 11% to $390.8m with growth in all verticals apart from poker, which remained flat YoY at $94m.
The firm said online casino “delivered consistent standout growth” with revenues up 16% to $220.6m, while it Kambi Sports Solutions-powered 888Sport had a “transformational year” with revenues up 115% off the back of a successful World Cup and increased marketing activity.
Revenues from 888Sport and other “emerging offerings” increased from $24m in 2013 to $30m last year, while bingo revenues increased 7% to $47m, which the firm said “vindicates” its decision to restructure its bingo business back in 2013.
888’s B2B business posted a rise in revenues of 32% in 2014 to $64m, driven by the first full-year contributions from its US operations and the addition of 13 new skins to the Dragonfish Bingo Network.
“This outstanding result reflects the fundamental strength of our business and the continued execution of our focused strategy,” Brian Mattingley, 888’s outgoing chief executive, said.
“Whilst the business faces external challenges in the form of PoC Tax in the UK, VAT in certain jurisdictions and adverse foreign exchange movement from a strong US dollar, I am confident that the Group is well placed to take advantage of opportunities that regulatory change opens up to companies such as 888,” he added.
The firm also gave a trading update for Q1 2015 where revenues were down 6% year-on-year due to unfavourable exchange rates and VAT changes in the European Union. At a constant currency basis and excluding VAT revenues were up 7%.
888’s share price was up almost 5% to 160.25p after early morning trading.
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