888 revenues up 6% in 2019 as recreational customers fuel UK growth

888 Holdings has reported a 6% rise in its group revenues on a like-for-like basis (2% reported) for the period from 1 January to 18 May, on the strength of a growth in the UK market.

The London-listed operator confirmed an 18% like-for-like rise in its UK revenues (8% reported) for the period, with growth driven by the Orbit casino platform and increased marketing spend.

The firm said “the vast majority” of UK revenue was generated by recreational customers.

On a group level, the operator revealed a 29% increase in revenues from its sports betting business together with a 13% increase in its online casino revenues.

The double-digit rises offset a 28% fall in revenues from its poker offering, together with flat growth in its online bingo operations during the period.

Itai Pazner, CEO of 888, acknowledged the challenging poker market and its decreasing revenues, but said he was pleased to see an “improving revenue trend in Q1 2019 against Q4 2018”.

“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,” Pazner added.

Analysts Regulus Partners disputed the positive tone of the trading update, suggesting the figures portrayed “a mixed and lacklustre performance in [non UK] markets which should be growing more strongly”.

Regulus said 888’s faltering poker revenues were not due to a challenging market, but due to the role other poker operators are playing in decreasing 888’s “credible liquidity position”.