888 H1 revenue rises 37% as record FTDs drive double-digit growth
London-listed operator reports impressive poker performance as vertical revenue rises 56% and FTDs jump by 103%
888 has reported a 37% year-on-year rise in group revenue to $379.1m (£295m) for H1 2020 buoyed by strong growth across several key verticals.
B2C revenue rose by 38% to $361.3m (£281.2m) during H1, while group B2B revenue increased by 21% during the same period to $17.8m (£13.8m).
Company adjusted EBITDA jumped 56% to $70.1m (£54.5m) during H1, corresponding to an adjusted EBITDA margin of 18.5%. Profits before tax also skyrocketed 130% in the same period to $50.9m (£39.6m).
Poker proved to be the big winner for 888 during H1 as revenue rose 56% to $36.1m (£28.1m), closely followed by casino, where revenue increased by 48% to $260m (£202.4m) during the same period.
888 highlighted a 49% increase in FTDs across its B2C brands, buoyed in part by a 72% increase in casino FTDs and a 103% increase in poker FTDs.
H1 bingo revenue grew by 8% annually to $21.2m (£16.5m), with sportsbook revenue dropping by 1% to $44.1m (£34.3m).
However, 888 has reported “better than expected” customer reaction to the gradual return of sports events, with sport revenue during June coming in 59% ahead of the same period in 2019.
Revenue from regulated and taxed markets represented the majority of group revenue in H1 2020 at 73%, down 1% from the same period in 2019. 888 has said this is due in part to a lower share of revenue from the German market.
“This outcome reflects the group’s continued strong levels of customer acquisition, general consumer trends towards increased use of online services especially during the Covid-19 lockdown period and 888’s relentless focus on product leadership,” 888 CEO Itai Pazner said.
“We are pleased with our continued progress in the US where revenue increased by 90% year-on-year, reflecting the group’s outstanding B2C growth in New Jersey as well as strong performances from our B2B partners.
“We remain excited by the potentially significant medium-to-long-term opportunities for 888 in the US market,” Pazner added.
The London-listed operator confirmed that its Q3 to date revenue is currently trading ahead of expectations, with average daily revenue up 56% when compared to 2019.
Based on these figures, it has said it is on track to achieve an adjusted EBITDA outcome for 2020 significantly ahead of prior expectations.
“This performance reflects the group’s high levels of customer acquisition during the year to date as well as the benefit from the structural shift towards online services that has accelerated across several consumer-facing industries during recent months,” 888 said.
During H1, 888 doubled its safer gambling interactions, more than doubling the number of accounts on which restrictions were introduced as part of a “more cautious” approach to monitoring player affordability.
As part of this, 888 introduced new algorithms to its proprietary Observer system, which identified and flagged potential warning signs of gambling-related harm among players during the lockdown period before referring them to the operator’s safer gambling team.