Itai Pazner allays concerns over post-pandemic online growth reversal

888 CEO Itai Pazner has dismissed concerns that record levels of growth in online gambling will reverse once Covid-19 restrictions come to an end.

In its 2020 results, 888 reported a landmark revenue rise of 52%, with double-digit growth across all key divisions and operating markets.

However, as lockdown restrictions ease into the summer and the vaccination roll-out picks up, there have been suggestions that online growth could trend downwards as consumers return to retail and aim their leisure spend away from the digital sector.

Speaking exclusively to EGR, Pazner suggested a more level trajectory over the next year. “I don’t think there will be a reversal, but there’s going to be a moderation,” said Pazner.

“It’s only logical after people have been locked down for over a year, and haven’t spent the time and money on outdoor activities, on holidays, it’s only natural that people will spend more time outdoors and on their traditional entertainment habits.

“From our perspective, where we are now is the new baseline. We weren’t projecting significant growth, and you can see this in the analyst consensus. Our projections are quite flat in terms of top-line growth.

“This is due in part to regulatory headwinds that we will encounter in our jurisdictions.

“On the other hand, it’s down to the realisation that when Covid-19 goes finally goes away, and that may happen in the US and UK towards summer, but others will follow later, there will be a moderation.

“However, as we come back to Q4, and certainly going into Q1 2022, the traditional good gaming quarters, I think we’ll be back to normal in terms of gaming activity,” Pazner added.

One market where 888 enjoyed a stellar 2020 is Italy; the firm saw revenue rise by 69% and new customer numbers increase by 43%, despite the country’s ban on gambling advertising.

Addressing this growth, Pazner referenced the influence of the pandemic in driving land-based punters towards online gambling.

“We are traditionally more digital marketeers, it’s in our DNA and therefore we have strong online assets, including our ranking positions on Google and through affiliates that are active still in Italy,” he explained.

“When this demand came online, players found us, were very happy with our products and as a result we managed not only to grow our revenue, but we managed to grow our share of the Italian market.

“Actually, Italy is one of the strongest markets for us in terms of market share in online casino. We now want to grow further in sports and obviously we’d also like to expand our poker operations.

“Everyone benefited during the pandemic, but I think the companies that have stronger digital assets and stronger products benefited more,” Pazner concluded.