30th Jan 2014 09:34
LONDON (Alliance News) - Online gaming and software firms 888 Holdings PLC and Playtech PLC both Thursday reported strong performances in the fourth quarter of 2013.
888 Holdings said quarterly revenues in the quarter ended December 31, 2013 rose 10% on the year before to a record USD107 million, boosted by an impressive performance from its casino products. It said it expects revenues for 2013 to come in at USD401 million, up 7% on the previous year.
Software provider Playtech said that, after its strong final quarter, both revenues and adjusted earnings for the full year 2013 will be marginally ahead of current analysts' consensus.
888 Holdings said it will release its full-year results for 2013 on March 25. In a trading update for the fourth quarter Thursday, it said growth was again mainly driven by an increase in casino playing, which rose 15% to USD51 million. It said the increase was supported by an enhanced product offering, an extended regulated-markets proposition, and further mobile penetration.
It said B2C revenue overall for the fourth quarter increased 8% year-on-year to USD93 million, driven mainly by casino revenues, as well as a 2% increase in poker revenues to USD25 million. Bingo revenues for the period came in at USD11 million, a fall of 45% due to a competitive UK environment, although it said it is seeing some signs of recovery.
888 said it had 15.5 million casino, poker and sport real money registered customer accounts at the end of the year, representing an increase of 19% from a year earlier.
The group recently launched its products in the newly regulated US states of New Jersey, as well as in Delaware towards the end of the year. It sees New Jersey as a big growth driver going forward for the business, haven taken up a 28% market share in teh newly regulated state.
"Trading during the first 27 days of the first quarter of 2014 has started well continuing the strong trading during the previous quarter. Daily average revenue for the first 27 days of the quarter is approximately 3% higher than the corresponding period in the previous year led by poker," 888 Holdings said in its trading statement.
Meanwhile, Playtech said it continues to strengthen its position by signing new licensees and working closely with existing licensees ahead of upcoming major sports events, including the football World Cup in Brazil later this year.
It said it completed the rollout of further products, specifically focusing on its mobile and sports verticals both in Europe and elsewhere.
888 Holdings shares were amongst the biggest gainers on the FTSE 250 Thursday morning, trading 2.0% higher at 142.80 pence per share. Playtech shares were trading at 701.64 pence per share, up 0.3%.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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