888 plans US market exit despite sports betting expansion
The large gaming corporation 888, which also owns William Hill and other well-known brands, intends to exit the US market.This decision is made in spite of the fact that...
888 Holdings records impressive 51.6% year-on-year revenue growth
888 Holdings has announced massive growth year-on-year in 2020, with an incredible 51.6% increase from 2019. It was able to record impressive growth despite the fact that some impairment charges on its bingo product caused setbacks.
In 2020, 888 released a brand new sportsbook platform and incorporated a new safer gambling feature for all players.
Throughout the year, the total revenue for the period of 12 months came up to $849.7 million (or £608.4 million). The same category in 2019 was only $560.3 million, showcasing huge growth. B2C revenue also attained $814.3 million, a 54.5% increase, and casino was this category’s main source of income.
Moreover, revenue from sports betting was boosted by 35.7% to attain $122.1 million, increased by the launch of its new platform. Revenue from poker also went up by about 47% to reach $63.1 million, which was aided by the release of a poker product.
Aside from that, revenue from bingo increased by 9.9%, up to $42.3 million, a small but impactful boost. This was caused by the Costa Bingo takeover back in 2019. 888 also noticed an increase in B2B revenue, boosted by 18.9% to reach $35.4 million.
Taking a look at each market separately, the UK was still the primary market, with the revenue from the country coming up to $333.5 million, about 39% of the total revenue. Europe, Africa and the Middle East also brought in $253.4 million, which makes up 30% of the overall total, and the US along with the Americas made up for 11%, or $93.7 million.
In 2020, 888 launched its Control Centre, which is a source for safer gambling that provides players with tools to encourage and help with responsible gambling.
Itai Pazner, 888 chief executive, explained:
“2020 was a landmark year for 888, with our team navigating the many challenges presented by a global pandemic to deliver record financial results, and significant progress against our strategic priorities. Our product-leadership strategy delivered outstanding results in 2020, with the launch of our ground-breaking Control Centre, our first ever in-house sportsbook, and a totally new poker platform. Our focus on delivering safe, intuitive, content-rich and entertaining products is helping us to deliver a differentiated customer experience and supporting our market share gains in key regulated markets.”
The company ended up paying $151.8 million in gaming taxes during 2020, as well as $135.1 million in costs that concern sales. The gross profit of the company was revealed to be $562.8 million, which is a 49.4% increase from 2019. Operating costs amounted to $170.1 million, and marketing expenses cost $237.1 million, which meant that the company ended up with $155.6 million in adjusted EBITDA.
Pazner was optimistic about this year and concluded by saying:
“We enter 2021 with strong momentum, with a record level of customers, and with a positive reaction to our suite of new products and innovations. As a result, as well as the group’s strengths as a product-centric, responsible, and diversified operator, the board believes that 888 has an outstanding platform to deliver continued strategic progress during 2021 and beyond.”
Australia Weighs Total Gambling Ad Ban
Australia under pressure to curb gambling ads after talks with Belgian and UK regulators. Will they follow Belgium's lead with a total ban?
Push for Gambling Ad Ban Grows ...
