Since UK retail reopenings on 17 May, average daily revenues nearly 20% lower than last year
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888 Holdings said revenue for the second quarter of 2021 grew 20% year-over-year to $257 million, or 10% at constant currency.
The company’s customer revenue increased 11% to $247 million in the three months to 30 June, up from $204 million in the same period last year. This growth was driven by its casino (+13%) and sportsbook (+94%) offerings, which has pushed 888 to double down on its sports division, the company said in a post-close trading update.
Revenue growth was driven by regulated and taxed markets, which contributed 74% of revenue, with strong performances in the UK, Italy, Spain, Romania and Portugal offset by the impact of the new regulation in Germany, where the company received a sports betting license.
Since UK retail and leisure venues reopened on 17 May, average daily revenues have been around 20% lower than last year. Poker and bingo revenues tumbled lower than the year prior, reflecting “exceptionally strong performance” during the prior year period amid stricter lockdown measures in the UK and Europe.
While the second quarter of the year was slightly ahead of board expectations, the group said it “remains mindful” of the impacts of summer without Covid-19 restrictions for retail and leisure markets for the second half of the year. The company’s Board expects adjusted EBITDA for the full year to be slightly ahead of the prior year, despite the increased investments in the business.
Itai Pazner, CEO of 888, commented: “I am pleased to report that the strong momentum from the first quarter of 2021 continued into the second quarter, albeit with the year-on-year growth rate moderating in light of stronger comparables from the prior year. Growth was driven primarily by regulated markets, where we believe ongoing market share gains continue to reflect our product-leadership strategy, highly effective data-driven marketing, and our excellent content.”
“In addition to strong trading across our core European markets, we made significant strategic progress during the period in the attractive US market, where we announced a long-term strategic partnership with Sports Illustrated. We look forward to launching SI Sportsbook as a key pillar of our strategy to drive increased growth in the US,” Pazner concluded.
