Gibraltar-based online gaming operator 888 Holdings officially announced its audited full-year financial results for the period ended on December 31st, 2016.
Commenting on the operator’s performance 888 Holdings’ Chairman Brian Mattingley described the past year as an outstanding one for the company, which managed to generate strong financial results over the period. According to Mr. Mattingley, the strong financial results of the company were backed by the significant progress against the strategic objectives set by 888 Holdings.
The Chairman of the operator described the main drivers of the company’s success in 2016, saying the long-time investments in the technology leadership, as well as the successful expansion in global regulated markets and excellent performances of the Casino and Sports Betting divisions pushed the overall strong performance of 888 in the 12 months ended on December 31st, 2016.
888 Holdings, which is currently one of the leading and most popular online gaming services and solutions providers, revealed a 18% revenue increase on a constant currency basis, reaching $520.8 million. In comparison the annual revenue registered in 2015 amounted to $462.1 million. On the other hand, the business-to-consumer revenue of the company also marked a strong increase of 20% over the year ended on December 31st, 2016. 888 Holdings provided more detailed information about the revenue generated by the separate divisions of the company.
Strong increase estimated to 26% from $230.6 million in 2015 to $279.3 million in 2016 was registered in the casino unit of the operator. This increase was surpassed by the growth of 58% generated in the sports betting division of the operator, with the division’s result amounting to $51.9 million for the year 2016. Previously, the sports unit was previously included in the Emerging Offerings segment, but it was now presented as a standalone division.
The Emerging Offerings operations of the company declined by 14% over the period, reaching $2.8 million. Unfortunately, the poker unit of 888 Holding’s business-to-consumer operations also registered a small decline of 3% to $84.4 million. The bingo unit, however, increased by 7% from $44.0 million in 2015 to $41.8 million in 2016.
The online gaming operator’s adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) rose by 24% on constant currency basis from $80.6 million to $90.2 million over the 12 months ended on December 31st, 2016. A massive increase of 82% was registered in the company’s profit before tax, which hit $59.2 million.
The Chief Executive Officer of 888 Holdings Itai Frieberger also commented on the 888 Holdings’ performance and said that the operator managed to deliver excellent organic growth and boost its brands’ presence in the regulated markets where the company already operated in. According to him, there were three key drivers of 888 Holdings’ success over the 12-month period. Mr. Frieberger described the increased number of new players in the company’s brands, the maximisation of the life-time value of each customer of the company as well as the reduction of the cost per acquisition of the new players.
The company revealed that it would remain focused on its strategy to generate sustainable growth and delivering continuous value for its investors over the current fiscal year. 888 Holdings intends to develop its core business-to-consumer brands further, continue its expansion strategy into global regulated markets, and focus on customer protection and responsibility. Further investments in the company’s partnership with Dragonfish are to be made, as well as making everything possible to maximise the operational efficiencies of the company.
- Author
Olivia Cole
