Q&A: 888AFRICA CEO on sustained growth on the continent

Last week marked two years since 888AFRICA was brought to life. Led by CEO Christopher Coyne, the business has made significant strides on the continent in its short life span. Operations now span multiple markets, with further entries on the horizon. The operator was also able to sanction its first M&A move last year after snapping up BetLion to expand its footprint even further.

With active customers increasing, along with core financial KPIs, Coyne strikes a positive figure. Speaking to the exec, it is clear his enthusiasm is infectious. Sitting down with EGR, Coyne explains how the company closed out 2023, what is on the horizon over the next 12 months and how he is building a business to be proud of.

EGR: How have the past 12 months shaped up for the business and what is on the imminent horizon for 888AFRICA?

Christopher Coyne (CC): In January 2023, you can see a business that was turning over somewhere in the range of $20m in the month.

If you look at expectations for this February, we are running multiple times higher. We’re still in the same number of markets as we were 12 months ago. So, it all really comes from improved performance in the existing markets. But the good news on the horizon is that we expect to launch three new markets over the next several months, all of which you would call ‘gold bracket’.

EGR: Can you touch a bit on how that performance has improved and any key market highlights for the brand?

CC: Our tech partnership with FSB is very strong. We continue to do very well with Sportingtech in Mozambique. Our strategy is podium. We are definitely podium in Mozambique and we are forcing our way forward in Zambia.

Zambia has really heated up for us. We are about six or seven times larger now than we were in Q1 last year. That was with BetLion, but since we took them over last year, the Zambia numbers have gone way up.

Now we are really doubling down on new markets. We have 100-plus people on the books with 70% of them in Africa. I think that can grow to be much bigger again.

EGR: When we last spoke you really championed the power of crash games in Africa. Has this trend continued?

CC: We’ve just launched bet boosts with FSB and enhanced accumulators are on the way, so the sports betting product is getting better. We are also going to drive casino because we are sports betting and Aviator [crash game] heavy.

The idea that we now have performance on sports, then on top of that add casino [puts us in a good spot]. I think at some point casino overtakes sports but the big show at the minute is Aviator.

I think in 2024, sport betting becomes a multiple of where it is and casino does the same.

EGR: In Q3 2023, 888AFRICA passed the one million customer mark. How has that figure progressed since then?

CC: In total we acquired 1.5 million customers last year at a really effective cost per acquisition (CPA). This year we expect to be over two million new customers.

There is competitive intensity in a different way to where it was 12 months ago. Obviously, we have the likes of Hollywoodbets, Elephant and Premier but we just know what to do.

In terms of turnover this year, with the new markets and everything that we are doing in the core market, I’m confident we will be into 10-figures for turnover. We have the same team, we add a few specialist resources, but it is essentially the same machine performing increasingly better month on month.

EGR: You mentioned BetLion earlier, with that acquisition closing in August last year, how has the development of that brand progressed?

CC: We have applied some learnings we had from other parts of Africa into the promotional schedule, and really built on what the former owners had done.

We also added Aviator in Q3, when we bought BetLion, it didn’t have it. The cocktail of all of that means we have seen revenue grow by over five times since we acquired it.

EGR: On that point, how much total addressable market (TAM) is available if NGR is increasing at the rate it is?

CC: I think the TAM in Zambia is strong and Mozambique is a beautiful market for us. I think there’s two markets that were underperforming in historically. One is Tanzania. And two is Zambia.

We’ve got a proven case now for Zambia that’s on a surge. It’s partly technology. It’s partly the addition of Aviator. It’s partly the quality of the marketing programme now versus where it was. And we’re spending more.

Tanzania sits on Sportingtech and is a brilliant partner in Mozambique [but] we will put FSB live on Tanzania this year, probably before, July.

I honestly believe that with bet boosts, with enhanced acca and with pre-canned RABs, we can push into Zambia and Tanzania in a serious way.

In Tanzania, we also have a casino licence. I think we can see multiple times our revenue as we have seen in other markets.

The two markets I’m most excited about are Zambia and Tanzania. I think for Mozambique, the target is to be number one and just keep driving and driving and driving.

EGR: Are you looking to replicate the 888AFRICA model in other geographies?

CC: We are keen to look at new geographies and we think there’s opportunity outside of Africa.

I think what we’ve got won’t work in every zone. If you want to go and compete in the US or one of the heavy European markets, the model probably isn’t the right one.

But, if you’re talking about scrappy, agile testing and learning, then that works. One of the things we’ve done is build a research unit at the heart of the company.

Another of the things that I have taken with me in my career is the incredibly important reference of needing to be tight to the customer. How customers respond need to be deeply researched. We’ve taken specialists who were at Sky Bet, and they brought them over to Africa to make that work.

The competition isn’t thinking the way we are. None of them are bringing that eternal focus on customer into how they’re going to market. And I genuinely think because how intense and scrappy and focused we are but carrying forward some of the stuff that makes the tier-one operators great, is how we are starting to separate from others.

EGR: One final question, how is the relationship progressing with 888 given the company now has a new CEO at the helm in the shape of Per Widerström since October?

CC: I recently presented to the board and [Per’s] endorsement for what we are doing is really strong. He said two things to me. Firstly, well done on what you are doing and keep going. Secondly, was how can he help. What a positive statement from him.

What he did say to me on top of that was he’s got an incredible passion to come to Africa with me. So, he will come on a trip with me and I think the statement of that means more than this just being another piece of work.

We are into the last three years of the term of this deal. The focus and the intensity with the team is just to continue to build a business that they will be proud to buy. So, it must be about customer growth. It has to be about continued momentum on turnover. It has to be about profit and all of it done in the right way. It’s a golden future.