888 CEO: We have a three-year plan for US growth
Itai Pazner dismisses LVS take-over rumors claiming the operator is instead "focusing on growing the business and reaching strategic objectives at the moment"
888 Holdings is planning to launch its Spectate sports betting platform in the US in 2021 as the firm looks to make up ground on more established players including DraftKings, BetMGM and FanDuel.
Its 2020 US revenue rose by 71% on the previous year as it secured market-access in three additional states.
However, group CEO Itai Pazner downplayed the importance of making significant strides in the US in the short-term, suggesting the firm instead has a wider, long-term strategy for the market.
“I don’t believe in the whole concept of make or break, I believe in taking things step-by-step and making these opportunities work for us,” he told analysts during the operator’s 2020 financial earnings report this week.
“We do have a lot of things that we’re launching this year, so I do think we’ll make a step change this year in the US, but even if it is unsuccessful, then we’ll continue into next year.
“Our plan in the US is a three-year plan. We want to launch in multiple states, to come up with our new infrastructure and to support the successful B2B deal that we have with Caesars.
“We have a very clear three-year plan in place, and it could be that one year we’ll progress more than the next, which is what usually happens.
“I’ll obviously be happy to be pleasantly surprised about this year, but this year is one step in a bigger plan,” Pazner concluded.
888’s growth story in the last year has led to glowing Buy recommendations from investment banks including Berenberg, Peel Hunt and JP Morgan.
As a result, the firm has been mooted as a potential takeover target for US operators, many of which are seeking out technology-focused European partners.
For his part, Pazner declined to comment on the speculation.
He said: “First of all, I have no control over this, it’s a matter for our board of directors. If 888 is a target for any US or any other European operator, it’s outside of our control.
“Obviously, I think we’re a great company, we have great assets, and therefore I think we’re an attractive company that I’d like to buy if I was on the other side of the fence.
“However, we’re focusing on growing the business and reaching our strategic objectives, and that’s our full and sole focus at the moment.
“There’s a lot of growth opportunities for us in each of our operational areas and we’re focusing on that,” he concluded.
Eilers and Krejcik Gaming estimated the operator maintained a 1% share of the New Jersey igaming market in 2020, while its betting share was 0.27%.
888’s overall group B2C revenue grew 53% in 2020, rising to $814m, with double-digit growth reported across all key verticals.