TIDM888
RNS Number : 4442P
888 Holdings plc
19 October 2021
19 October 2021
888 Holdings Plc
("888" or "the Group")
Q3 2021 Trading Update
Quarter of significant strategic progress for 888. Q3
performance underpins the Board's full year expectations
888 (LSE: 888), one of the world's leading online betting and
gaming companies, announces a trading update for the three months
ended 30 September 2021 ("Q3 2021" or the "Period"). Comparative
figures in this trading update are provided in US$ on a
year-on-year basis against the three months ended 30 September 2020
("Q3 2020"), unless otherwise stated.
YTD: 1 January to 30
Q3: 1 July to 30 September September
$ millions(1) 2021 2020 YoY % 2021 2020 YoY %
------------------- --------- --------- --------- ------- ------- -------
B2C Gaming 193.5 174.6 +11% 622.3 491.9 +27%
B2C Betting 26.8 31.7 -15% 107.1 75.8 +41%
Total B2C revenue 220.3 206.3 +7% 729.4 567.6 +28%
B2B revenue 9.6 9.3 +4% 28.9 27.1 +7%
Total revenue 229.9 215.6 +7% 758.3 594.7 +28%
------------------- --------- --------- --------- ------- ------- -------
Highlights
-- Group revenue +7% (+3% cc(2) ) driven by continued expansion
in regulated markets, despite a tough comparator period due to the
very strong growth in the prior year
-- Strong performance in B2C Gaming was led by casino; B2C
Betting declined against a very strong outcome in Q3 2020 when the
Group benefitted from the condensed calendar of sporting events
following Covid-related disruption. Compared to Q3 2019, B2C
Betting revenue increased by 21%
-- Average daily actives(3) +6% year-over-year reflecting the continued success of the Group's product-leadership strategy and effective data-driven investments
-- Key regulated markets delivered a strong performance, particularly Italy and Romania
-- Announced the transformational acquisition of William Hill
International, creating a global leader in online betting and
gaming, with significantly enhanced scale and leading positions in
key regulated markets
-- Successful launch of SI Sportsbook in Colorado, utilising
888's in-house sports betting platform for the first time in the
US
-- Successful launch in the regulated German market under a
newly issued sport licence, in line with the Group's strategy to
achieve sustainable growth in attractive regulated markets
-- Continued strong cash generation and robust balance sheet
Current trading & outlook
The Group's Q3 2021 performance was in line with the Board's
expectations.
At the end of the Period and following policy changes published
by the Dutch Gambling Authority (the KSA), the Group took the
decision to cease provision of services in the Netherlands from 1
October 2021. The Group continues to believe the Netherlands
represents an attractive medium-term opportunity and intends to
apply for a local licence in the coming months. Notwithstanding
this unforeseen development within the Netherlands, the Board
remains confident that the performance of the Group during the
current year will be in line with its expectations.
Looking ahead, the timing of any licence award within the
Netherlands remains unclear, but the Group aims to be operational
within the country during the second half of 2022. This temporary
closure is expected to negatively impact 2022 EBITDA, post certain
mitigations at Group level, by approximately $10 million, with no
change in the Group's expectations for 2023 and beyond.
Itai Pazner, CEO of 888, commented:
"Q3 2021 was a period of outstanding strategic progress for 888.
During the period we announced the transformational acquisition of
William Hill International, successfully launched SI Sportsbook in
the US, and began operating 888sport under a new licence in Germany
as we continued to execute our plan to build a global online
betting and gaming leader.
Alongside these important strategic milestones, I am pleased
with the Group's continued positive trading, particularly as we lap
very tough comparative periods. This performance reflects the
continued success of our data-driven investments and execution
against our product-leadership plan that delivers ongoing
improvements in the usability, quality and safety of our sports
betting and gaming products.
Underpinned by our advanced technology, leading products, and
strong brands, as well as the increased scale, talent and
diversification that the Group will benefit from as a result of its
combination with William Hill International, we have a very
exciting platform for long-term growth."
Business review
Q3 2021 was a period of significant progress for 888. During the
Period, the Group announced the transformational acquisition of
William Hill International, which will significantly enhance the
enlarged Group's scale and create leading positions in several key
regulated markets. In addition, the Group continued to deliver on
its long-term growth strategy in the US market with the successful
launch of SI Sportsbook in Colorado, utilising 888's in-house
sports betting platform for the first time in the US.
B2C
Gaming revenue growth of 11% was led by casino, reflecting the
continuing success of the Group's investment in enhancing the user
experience through product and content leadership as well as
AI-driven personalisation.
During the period the Group launched more than 150 new casino
games including several in-house developed games, which continue to
resonate well with customers and provide a differentiated
experience. Alongside expanding the range of content, the Group
continues to improve the experience for customers using AI-driven
recommendation engines and personalised offers, which it believes
is leading to increased share of wallet, and therefore market share
gains in several key regulated markets such as the UK, Italy, Spain
and Romania.
Betting revenue declined 15% against Q3 2020 when the Group
delivered a very strong performance that benefited from a condensed
calendar of sporting events following Covid-related disruption,
particularly within football across the Group's UK and key European
markets. Compared to Q3 2019, Betting revenue increased 21%.
B2B
Revenue from 888's B2B division increased 4% to $9.6 million,
with both the bingo and US operational segments delivering moderate
growth.
In July 2021, the Group launched the World Series of Poker
("WSOP") brand in Pennsylvania under its partnership with Caesars
Interactive Limited, bringing the Group's latest poker platform to
the US. WSOP is also expected to launch in Michigan in the coming
weeks.
Notes
(1) Totals may not sum due to rounding. Growth rates are
calculated on unrounded numbers
(2) Constant currency ("cc") growth is calculated by
retranslating the non-dollar denominated component of revenues at
prior year period exchange rates
(3) Actives represent players who wagered real money during the
Period and have deposited real money on at least one occasion
Sell side analyst and investor call
Itai Pazner, Chief Executive Officer, and Yariv Dafna, Chief
Financial Officer, will host a call for sell-side analysts and
investors today at 9:30AM (BST).
Live audio webcast link:
https://webcasting.brrmedia.co.uk/broadcast/61659c2f4e29f55a941930db
To participate in Q&A please contact 888@hudsonsandler.com
or call +44 (0)207 796 4133 for further details.
A replay will be available on our website shortly after:
https://corporate.888.com/investor-centre/
Enquiries and further information:
888 Holdings Plc +350 200 49 800
Itai Pazner, Chief Executive Officer
Yariv Dafna, Chief Financial Officer
Vaughan Lewis, Chief Strategy Officer
Investor Relations
James Finney ir@888holdings.com
Media
888@hudsonsandler.com
Hudson Sandler
Alex Brennan
Bertie Berger
Andy Richards +44(0) 207 796 4133
- Ends -
About 888 Holdings Plc:
888 Holdings plc (and together with its subsidiaries, "888" or
the "Group") is one of the world's leading online betting and
gaming companies. 888's mission is to develop state-of-the-art
technology and products that provide fun, fair and safe digital
gambling products to players globally. Safer gambling is a core
focus for the Group and, a t the beginning of 2020, 888 launched
its 'Safer. Better. Together' safer gambling strategy and
commitments.
888 has been at the forefront of the online gaming industry
since its foundation in 1997, leveraging its proprietary technology
to provide players and B2B partners an innovative and world-class
online gaming experience.
In 2020, the company was proud to be recognised at the 2020
Gaming Intelligence awards as the winner in the Casino Operator of
the Year category. In 2020, 888 also won two prestigious awards for
its poker platform at the 2020 Poker Listings Operator Awards in
the Most Improved Software and Best Beginner Software
categories.
The Group is structured into two lines of business: B2C, under
the 888 brands, and B2B, conducted through Dragonfish, which
provides partners a leading platform through which to establish an
online gaming presence and monetise their own brands in a safe and
responsible manner.
888's consumer facing websites offer more than just online
betting and gaming. They are entertainment destinations: places
where people can enjoy a truly interactive experience and be part
of an online community that shares common interests. 888's strong
and trusted brands are all accessible through www.888.com .
Find out more about 888 at https://corporate.888.com/
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