888 US revenue jumps just 6% as SI sportsbook push stifles numbers

888 has reported a modest 6% year-on-year (YOY) increase of just 6% in its revenue derived from the US, according to the firm’s 2021 financial results, with revenue growing to $22m.

Delivering its financial figures for the period, 888 highlighted good performance in its 888casino brand in the New Jersey market, performance which was offset by increased promotional spend on its Sports Illustrated (SI) sportsbook and increased investment in the brand during Q4.

The London-listed operator has said it is anticipating launching in a further three to four states in 2022 to add to its 888casino in New Jersey and SI Sportsbook in Colorado.

Chief among these is Michigan, where 888 intends to launch its B2B poker offering pending regulatory approval and Virginia, where the group obtained a temporary sports betting license in 2021.

Delivering his assessment of 888’s progress during 2021, CEO Itai Pazner highlighted the significant long-term strategic opportunity afforded by partnering with SI.

“SI Sportsbook went live in Colorado in September, and we have seen positive initial customer trends. We continue to test and learn with our product and promotions ahead of future state launches set for 2022” Pazner said.

“In the medium term, we expect to be in and around 12 to 15 attractive states for us in the US.

Pazner continued: “As SI builds out its brand, we are working on deepening the integration between the Sports Illustrated content website and the Sports Illustrated Sportsbook.

“We have some really exciting plans for 2022, including integration of the relevant content into our app. Operational expertise is the next one.

“We believe that combining this strong brand with our 25 years of experience in successfully operating a gaming and betting business, can create a unique customer experience, and enable us to carve out a sizable and loyal player base in the US market for SI Sportsbook,” Pazner added.

At a wider Americas level, 888’s revenue went up by 34% during 2021 to $125.6m, buoyed primarily by “strong growth” in the Canadian market, a similar long-term growth market for the firm to the US.

888 recently received a license to operate igaming and sports betting in the Canadian province of Ontario from the Alcohol and Gaming Commission of Ontario (AGCO), a license which will see the firm partner with iGaming Ontario, the province’s operational body.

Ontario was highlighted along with the Netherlands and Germany as one of three “interesting” markets for 888 by Pazner, who suggested 888 would invest heavily in all three markets in order to build up 888 into a top-tier brand.

At a wider group level, 888 posted a 15.4% year-on-year increase to reach record full-year revenue for 2021, reporting a total revenue figure of $980.1m.

Of this $980.1m total, $941.9m was derived from the group’s B2C arm which posted YOY growth of 15.7% from 2020’s $814.3m.

The group also posted a 6% increase in EBITDA from $155.6m to $165m, although its EBITDA margin slipped from 18.3% to 16.8%.

The slip in margin was a result of increased investment in its US-facing B2C operations.

Pre-tax profit rocketed 205% in 2021 from $26.7m to $81.3m, while the company also increased its available cash by 18% to $174.5m.

Elsewhere, 888 increased its marketing spend by 29.3% to $306.5m from $237.1m last year.