888 trading statement
The top line
B2C revenues up 11% YoY to $247m, B2B down 13% to $10m, total revenue up 10% to $257m.
Regulated markets now represent 74% of group revenues from 73% in prior year, with growth in UK, Italy and Spain among others helping to offset falls in Germany.
Sport was the big driver after the Covid-affected Q220, up 94%. Casino was up 13% YoY. Bingo and poker were down unspecified percentages compared to a strong Covid-affected comparative period.
Return to normality: 888 gave a strong hint this morning that the end of the mini-boom in online activity caused by the extensive lockdowns and other restrictions affecting leisure spend in its major global markets might be coming to an end. Specifically, the company cited the UK, where since mid-May leisure and entertainment venues have opened up and average daily revenues have fallen by approx. 20% YoY. Further regulatory and compliance changes along with the return of normalized seasonality will also impact H2.
Picture this: The company hopes the currently sub-scale B2B business will receive a shot in the arm from the recently announced Sports Illustrated deal. Recall, 888 hopes to launch a Sports Illustrated-branded sport-betting site later this year. It represents a “key pillar” of 888’s US strategy, CEO Itai Pazner reiterated today. The company also noted it has been awarded a licence in Germany. Previously, the company said Germany had seen revenues declines in Q1 of 40-50%.
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