18th Jan 2022 09:29
(Alliance News) - 888 Holdings PLC announced on Tuesday that revenue in the fourth quarter of 2021 had dropped year-on-year against a tough comparative, but full-year revenue growth was in the double-digits.
Revenue in the online betting and gambling company grew by 14% year-on-year to USD972 million from USD850 million, driven by 15% growth in business-to-consumer revenue, which constituted 96% of total revenue, at GBP934 million, up from USD814 million. Casino revenue led the B2C growth at 24%, and sports contributed a modest 4%, owing to stricter regulation in this sector.
888 says that 74% of revenue came from regulated and taxed markets, and it performed well in UK, Italy, Romania, and Portugal, offsetting a decline in Germany.
The strong revenue growth over the whole of 2021 came despite a year-on-year decline in the fourth quarter, down 16% to USD205 million from USD247 million. This was led by a B2C revenue decline of 17%. 888 says this was expected, as new regulation and compliance demands came in during the period, and the company exited the Netherlands.
888 reports a "robust" balance sheet, with cash of USD147 million on December 31.
888's share price fell by 2.5% to 261.81 pence in London on Tuesday morning.
888 Chief Executive Officer, Itai Pazner, said: "I am pleased to report another year of record revenues alongside these important strategic milestones, delivering double-digit revenue growth despite a very tough comparative period. This performance reflects the continued success of our data-driven investments and execution against our product-leadership focus that delivers ongoing improvements in the usability, quality and safety of our sports betting and gaming products."
Looking ahead, 888 expects to complete its acquisition of William Hill International and launch 888sport in Germany in the second quarter of 2022, as well as expand the launch of SI Sportsbook into further US states in the third quarter. It also expects to complete the sale of its bingo business for up to USD50 million in the first half of the year.
"888 Holdings is one of the first overseas brands making strong moves in the fledgling gambling market in the United States, and the upcoming acquisition of William Hill International's non-US assets is set to create an online betting and gaming group with considerable scale, a strong brand portfolio, diversified business and a platform for strong growth in the medium term," commented Russell Pointon, director of Consumer at research house Edison.
Full-year results will be released in March.
By Elizabeth Winter; [email protected]
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