Strong Performance in 2012 by 888
Wednesday March 13,2013 : STRONG FY 2012 PERFORMANCE FROM 888.COM
Bingo and B2B the only soft spots in a solid performance
The Gibraltar-domiciled online gambling group 888 Holdings plc posted its annual report to end December 2012 on Wednesday, showcasing a generally positive performance overshadowed only by losses in bingo and business-to-business activity.
Financial highlights included:
* Revenue increased 13 percent to $376 million (2011: $331 million)
* B2C Revenue increased 16 percent to $330 million (2011: $284 million)
* Adjusted EBITDA increased 20 percent to $67 million (2011: $56 million)
* Adjusted EBITDA margin rose to 17.8 percent (2011: 16.8 percent)
* Final dividend reinstated at 4.5 cents per ordinary share per the group's payout ratio, and due to strong performance the Board has sanctioned an additional one-off dividend of 2 cents per share, bringing the total dividend per share for the year to 9 cents per share
* As at 31 December 2012, 888 had 13.1 million Casino, Poker and Sport real money registered customer accounts, representing an increase of 23 percent since 31 December 2011
Breaking the 888 numbers down:
* Casino revenues up 12 percent to $165.5 million
* 888 Poker revenues up 44 percent to $87.5 million
* Bingo revenbues down 4 percent to $51.8 million
* Emerging offering up 16 percent to 25 million
* B2B revenues down 2 percent to $46 million
Operational highlights included:
* Significant market share built in Spain following award of Spanish e-gaming licence in June 2012
* In January extended relationship with Caesars to power a number of that company's poker brands including the "World Series of Poker" into the US, once regulated
* Strategic agreement signed with WMS in July 2012, enabling WMS to offer an online product to all its customers utilising 888's state of the art poker platform
* Agreement signed with Facebook to launch real-money products in the UK
* Slots successfully introduced in Italy in December 2012
* Significant increase in customer recruitment and revenue from mobile platforms following launch of multi-platform mobile suite and apps
Recent developments include:
*In February 2013, New Jersey Governor Chris Christie signed legalization authorising online gambling in the state, clearing the way for internet betting to begin in H2 2013
* March 6 – Nevada Gaming Control Board recommended to the Nevada Gaming Commission the approval of the licensing of 888 as an Interactive Gaming Service Provider. Commission hearing on 21 March 2013.
* March 11 – signed US joint venture agreement with Avenue Capital Group to launch and operate a comprehensive B2C gaming offering
Current trading:
Current trading has continued to be strong in the new fiscal year across all key performance indicators including new customer recruitment, deposits and bets. Specifically, average daily revenue during the quarter until 9th March is 8 percent higher than Q1 2012, a record quarter at the time, led by Casino and Poker. Bingo trading conditions continue to be challenging as are the current currency headwinds.
888 chief executive Brian Mattingley said Wednesday:
"2012 was an exceptional year for 888. The ongoing focus on our core strengths and the customer proposition, coupled with the very positive effects of our targeted marketing campaigns, has led to tremendous growth in player numbers and record results.
"Our performance in Spain and Italy indicates that we have a compelling offering marketed in such a way that we are able to build significant market share in newly regulating territories, something that places us in a very exciting position as the US market begins to open for business.
"Led by the long-awaited re-opening of the US market, from which we are uniquely well placed to benefit, 2013 is a year of significant opportunity and we have the right deals in place, both B2B and B2C, to gain a substantial foothold in the US.
"Growth in mobile gaming is also changing the industry, and our efforts in 2012 have allowed us to take advantage of the new ways in which people wish to play. We expect to see further growth in this area in 2013 and thus we remain confident in the outlook for 2013 and beyond."
