Online gambling firm 888 grows profits after year of strong expansion
Online gambling firm 888 has posted double-digit growth in profit before tax for the full year, despite a small decline in revenue.
The figures
Adjusted profit before tax increased 11 per cent to $86.7m (£65.6m).
Revenue declined by two per cent to $529.9m.
Adjusted earnings before interest, tax, depreciation and amortisation was up six per cent to $107.1m.
The company posted a final dividend of 6 cents per share, up from 5.9 cents per share last year.
Read more: 888 snaps up sports betting platform Bet Bright for £15m
Why it’s interesting
888’s results come on the back of a period of aggressive expansion, as the gambling company looks to stake its claim to the US market.
In December the firm bought out the remaining half of All American Poker Network for $28.5m, while it has also launched 888 Sport in New Jersey and entered into a sponsorship deal with American football team the New York Jets.
The double-digit rise in profit was driven largely by strong trading in the firm’s casino and sport divisions, which saw revenue increases of eight and six per cent respectively.
But this success was offset by a 37 per cent drop in revenues from its poker platform, which 888 said reflected a challenging competitive environment.
In addition, revenues for the firm’s bingo division dropped 17 per cent due to increased regulatory scrutiny in the UK. As a result, overall revenue slipped by two per cent over the year.
Read more: 888 goes all in for strong full-year results
What 888 said
Chief executive Itai Pazner said: “In my first report as chief executive I am delighted to update 888’s stakeholders on the significant strategic progress made by the group during 2018 and since the start of 2019.
“Amongst other initiatives, we have continued our geographic expansion by obtaining important new licenses; launched our most significant product innovation in recent years in the form of Orbit, a new casino platform; and announced three acquisitions including delivering on our long-stated ambition to add proprietary sports betting technology to 888.”
“Despite headwinds in some areas of the business, the financial performance in 2018 was resilient and we achieved a record earnings before interest, tax, depreciation and amortisation outcome for the year.
“The group achieved continued growth across several regulated markets, primarily in continental Europe, underpinned by good momentum in casino and sport.”