888 Group Reports Revenue Growth in Q1 Owing to Good Sports and Casino Performance

Online gaming giant, 888, has posted the financial results of the first 15 weeks of the year and revealed a 6% annual increase over the same period last year – with sports betting and casino performances to thank.

The report for the period of January 1st until May 18th shows a hike in revenue on a “like-for-like basis and constant currency.” It takes into the purchase of Costa Bingo and AAPN, as well as the migration of Cashcade Bingo platform.

Pinpointing the “Culprits”

Furthermore…

…the crucial causes behind this revenue bounty were, also, marketing investments that have significantly increased in the last 12 months, as well as the launch of Orbit Casino platform, 888’s brand-new technology. These two factors combined have helped attain the acquisition of new customers by 20% on a yearly basis.

During the same period, sports betting revenue made a 29% leap, while Bingo revenue remained very much the same.

UK, the Land of Plenty

The UK market brought substantial success to 888…

…because this is where the total revenue increased by 18% on a like-for-like basis as well as 8% on a reported basis. The focus on UK customers, imposed by the Group itself, paid off, because a larger share of UK revenue was generated by recreational customers.

The 888 board has provided a commentary of these results, stating that yearly objectives and projected full-year results will be met.

“888 has enjoyed a solid start to the year with strong momentum in casino and sport across a number of the Group’s major regulated markets. Whilst poker has remained challenging, we were pleased to see an improving revenue trend in Q1 2019 against Q4 2018,” said CEO, Itai Pazner, and added:

“In addition, we are very encouraged by a 20% increase in first time depositors across the group’s B2C business in the period; this reflects 888’s outstanding marketing capabilities and is a key indicator of our growth prospects. As a diversified operator that owns its own technology, the board continues to believe that 888 has a unique platform to deliver continued growth in the dynamic global online gaming industry.”

A Different Take

However…

…Experts at the analyst firm Regulus are not as optimistic and are willing to rain on 888’s parade, so to speak. Their bleak view is based on the assumption that the mid-single digit top-line growth is not an encouraging sign for a business with a global reach.

In their view, this points to continued market share loss and they’ve added that the growth with UK’s operators comes down to very weak competition and that this fairly easy victory is the main success behind overall revenue increase. “This suggests a mixed and lacklustre performance in markets that should be growing more strongly,” they warn.

In March, 888 reported a record EBITDA for 2018, which wasn’t even marred by the 2% year-on-year decline in revenue.

Source:

“Sport and casino performance drives 888 revenue growth”, igamingbusiness.com, June 4, 2019.