888 full-year revenues drop on poker and bingo struggles
Shares climb 3% as operator highlights 10% rise in daily UK B2C revenues in Q1
888 has announced a 2% drop in FY18 revenues to $530m, with B2C poker acting as a drag on the group after revenues fell 37% in the wake of a “ challenging competitive environment”.
The London-listed operator said poker revenues of $49m were hurt by withdrawal from Australia and Poland, and an 8% decline in actives.
However, it said its new platform currently being rolled out would increase momentum, as would the launch of shared liquidity between Portugal and Spain.
B2C bingo also negatively impacted 888, with revenues down 17% to $32m, reflecting heightened regulatory scrutiny in the UK.
Addressing the decline in the vertical, 888 said: “We are continuing to develop our product by introducing new games and enhancing customer personalisation which we believe will support 888’s future success in what remains a competitive bingo market.”
Elsewhere, B2C casino revenues climbed 8% to $318m, or 17% excluding UK. B2C sport increased by 6% to $80m or 18% ex. UK.
Adjusted EBITDA increased by 6% to $107m, while group B2B revenues was down 8% to $50m.
Group CEO Itai Pazner hailed the “significant strategic progress made by the Group during 2018,” including three acquisitions such as the BetBright sports betting platform announced last week.
“Despite headwinds in some areas of the business, the financial performance in 2018 was resilient and we achieved a record EBITDA outcome for the year,” Pazner said.
“The Group achieved continued growth across several regulated markets, primarily in Continental Europe, underpinned by good momentum in Casino and Sport.”
Pazner said 2019 daily revenues were also on the up, with UK B2C 10% higher than Q42018, and the group at around 5% higher.