TIDM888
RNS Number : 7867W
888 Holdings plc
28 April 2021
28 April 2021
888 Holdings Plc
("888" or "the Group")
Q1 2021 Trading Update
Revenue growth of 56% driven by strong growth in regulated
markets
888 (LSE: 888), one of the world's leading online betting and
gaming companies, announces a trading update for the three months
ended 31 March 2021 (Q1 2021). Comparative figures in this Trading
Update are provided in US$ on a year-on-year basis and in constant
currency against Q1 2020, unless otherwise stated.
$ millions Q1 2021 Q1 2020 YoY % YoY % at constant
currency
B2C revenue 262.8 156.9 67% 57%
-------- -------- ------ ------------------
B2B revenue 9.7 7.7 27% 20%
-------- -------- ------ ------------------
Total revenue 272.5 164.6 66% 56%
-------- -------- ------ ------------------
-- Revenue growth of 56%, driven by product-leadership strategy,
long-term positive customer acquisition trends, and continued
expansion in regulated markets
-- B2C revenue increased 57% to $262.8 million, led by growth in
Casino (68%) and Sport (53%), with continued growth in both Poker
(10%) and Bingo (8%)
-- Successful deployment of 888's in-house sports betting
platform, which is now delivering the majority of sports
volumes
-- Control Centre, 888's innovative safer gambling suite, has
continued to roll out across further products and countries as part
of 888's ongoing investment in safer gambling initiatives
-- 27% growth in average daily first time depositors ("FTDs"),
and 18% increase in funded active players(1)
-- Growth driven by regulated and taxed markets, which
contributed 76% of revenue (2020: 73%), with strong growth in the
UK, Italy, Spain, Romania and Portugal
-- Strong cash generation and robust balance sheet
Outlook
The first quarter performance was ahead of board expectations,
with continued strong momentum across the business, and favourable
exchange rate movements. For the remainder of 2021, year-on-year
trends will be impacted by a tougher comparative period, the
previously disclosed expected impact of regulatory and compliance
changes, and the impact of the reopening of retail and leisure
venues across our markets. The Group continues to increase
investment in product and marketing to support its long-term growth
plans, and as a result, the Board expects adjusted EBITDA for the
full year to be broadly consistent with the prior year, despite
increased investment in US B2C expansion.
Itai Pazner, CEO of 888, commented:
"The strong momentum in 2020 has continued into the first
quarter of 2021, with a new all-time-high for FTDs and revenues,
although year-on-year trends were partly inflated by the disruption
to sporting events at the end of the prior year period, and
increased demand for digital entertainment during this period
across our main markets.
Our differentiated products and our data-driven marketing
continued to underpin strong progress, supported by a favourable
industry backdrop. We are particularly pleased with the strong
performance of our new proprietary 888sport platform, which is
already servicing the majority of bets while maintaining strong
customer service levels and highly effective risk management and
trading.
We are excited about the US, where we plan to roll out sports
into further states in the next few months, and launch our upgraded
poker platform into further states in partnership with Caesars and
their leading and hugely popular WSOP brand.
We remain very pleased with the strong momentum in the business
and the continued positive customer reaction to our suite of new
products and innovations. As a result, and underpinned by the
Group's strengths as a product-centric, responsible, and
diversified operator, the Board believes that 888 has an
outstanding platform to deliver continued strategic progress during
2021 and beyond."
[1] Funded active players are B2C players that wagered a
positive amount during the period, and have placed at least one
deposit during their lifetime
Product analysis
Revenue ($ millions) Q1 2021 Q1 2020 YoY % YoY % at constant
currency
Casino 195.2 108.7 80% 68%
-------- -------- ------ ------------------
Sport 41.6 25.5 63% 53%
-------- -------- ------ ------------------
Poker 14.7 13.0 13% 10%
-------- -------- ------ ------------------
Bingo 11.4 9.8 16% 8%
-------- -------- ------ ------------------
Total B2C revenue 262.8 156.9 67% 57%
-------- -------- ------ ------------------
B2B revenue 9.7 7.7 27% 20%
-------- -------- ------ ------------------
Total revenue 272.5 164.6 66% 56%
-------- -------- ------ ------------------
B2C
888casino continued to achieve strong growth, driven by the
success of the Group's investment in its casino product over recent
years, ongoing development of its artificial intelligence (AI)
driven personalisation, and continued expansion of its content.
Major new content launches in the period included a suite of games
from Playtech, including further expansion of 888's live dealer
range. 888's proprietary in-house content studio, Section 8,
continued to deliver top quality exclusive new games, with Mad Max
Fury Road launching in February and quickly becoming a top 20
performing game.
The majority of 888sport volumes were successfully migrated to
its in-house platform, with almost no interruption to customers.
888sport stakes increased by 38%, with the enhanced customer
proposition also supporting record levels of FTDs. The betting net
win margin was 8.0%, compared to 6.8% in the prior year, reflecting
a combination of favourable sporting results and a structural
improvement in win margin due to the enhanced product and
promotional capabilities of our in-house platform.
Poker revenues increased by 10%, and were consistent with the
fourth quarter of 2020, with ongoing strong customer reaction to
the award-winning Poker8 product, and sustained successful
marketing with the "Made to Play" marketing campaign.
Bingo revenues increased by 8%, with growth supported by a new
improved home page, and AI features delivering an enhanced
personalised experience to players.
B2B
Revenue from 888's B2B division increased by 20% to $9.7
million, with both Bingo and U.S. operational segments delivering
growth.
Q1 conference call details
The Group will host an analyst and investor call today,
Wednesday 28 April 2021, at 9.00am (BST). Participants may join via
audio webcast.
Live audio webcast link: https://brrmedia.news/7meb4g
A replay will be available on our website shortly after:
https://corporate.888.com/investor-centre/
- Ends -
Enquiries and further information:
888 Holdings Plc +350 200 49 800
Itai Pazner, Chief Executive Officer
Yariv Dafna, Chief Financial Officer
Vaughan Lewis, Chief Strategy Officer
Investor Relations ir@888holdings.com
Media 888@hudsonsandler.com
Hudson Sandler
Alex Brennan
Bertie Berger
Andy Richards +44(0) 207 796 4133
About 888 Holdings Plc:
888 Holdings plc (and together with its subsidiaries, "888" or
the "Group") is one of the world's leading online betting and
gaming companies. 888's mission is to develop state-of-the-art
technology and products that provide fun, fair and safe digital
gambling products to players globally. Safer gambling is a core
focus for the Group and, a t the beginning of 2020, 888 launched
its 'Safer. Better. Together' safer gambling strategy and
commitments.
888 has been at the forefront of the online gaming industry
since foundation in 1997, leveraging its proprietary technology to
provide to players and B2B partners an innovative and world-class
online gaming experience.
In 2020, the company was proud to be recognised at the 2020
Gaming Intelligence awards as winner in the Casino Operator of the
Year category. In 2020, 888 also won two prestigious awards for its
poker platform at the 2020 Poker Listings Operator Awards in the
Most Improved Software and Best Beginner Software categories.
The Group is structured into two lines of business: B2C, under
the 888 brands, and B2B, conducted through Dragonfish, which
provides partners a leading platform through which to establish an
online gaming presence and monetise their own brands in a safe and
responsible manner.
888's consumer facing websites offer more than just online
betting and gaming. They are entertainment destinations: places
where people can enjoy a truly interactive experience and be part
of an online community that shares common interests. 888's strong
and trusted brands are all accessible through www.888.com .
Find out more about 888 at http://corporate.888.com/ .
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