Today, one of the leading online gaming entertainment and solutions providers on a global scale, 888 Holdings, revealed its trading update for the period from January 1st 2019 to May 18th 2019. The online gambling operator reported what it called an “encouraging” start of the year after its UK revenues rose by almost one-fifth.
The Group saw a 6% surge on a like-for-like basis during the above-mentioned period or a 2% increase on a reported basis. According to the official announcement made by the company, this result has been supported by increased marketing investment, combined with the release of the Group’s Orbit Casino platform. Furthermore, they together have boosted new customer acquisition by 20% year on year.
Furthermore, the group revealed that its strong momentum has been registered across several global regulated markets where 888 Holdings has been operating, with the surge being based mostly on its sports and casino divisions, with an impressive revenue increase in sports and 13% rise in casino. These two divisions partly compensated for the flat revenue registered by the bingo unit and the more significant, 28% decline of 888 Holdings’ poker division.
The online gambling operator described its growth over the period from January 1st to May 18th as “encouraging”, with special attention paid to the 18% revenue increase generated in the UK market, which is its domestic market, on a like-for-like basis. This was also an 8% increase on a reported basis.
Tighter Regulatory Domestic Market Rules Pushes 888 Holdings to Global Expansion
888 Holdings revealed that recreational customers were the ones primarily responsible for the majority of the company’s UK gambling revenue. The strong performance of the operator at the beginning of the current fiscal year has helped the Board remain confident that its full-year performance will be in line with the preliminary expectations.
The Chief Executive Officer of the group, Itai Pazner, shared that the operator had a solid start of the year and confirmed the strong performance of its casino and sports units in several major regulated markets. In addition, according to him, the 20% increase in the first-time depositors in 888 Holdings’ business-to-consumer business in the aforementioned period.
Pressed by the tighter regulatory rules on its domestic gambling market and the uncertainty and possible negative effect of upcoming Brexit, 888 Holdings was one of the operators which turned eyes to foreign markets in the past few months. Back in March 2019, the operator revealed that it was granted a new gambling license in Malta, which is expected to help it compensate for the results of the company in the conditions of a regulatory crackdown in the UK.
The complex and very dynamic regulatory conditions in the core market of the online gambling company have made it look for ways to consolidate its positions globally. Thanks to its more favourable regulatory conditions, Malta has been a desired destination for many gambling businesses’ operations.
On the other hand, the company was one of the businesses which were in a hurry to take advantage of the recently-opened sports betting market in the US. Following the ruling of the US Supreme Court, which lifted the sports betting federal ban in May 2018, the online gambling operator managed to launch a sportsbook service in the state of New Jersey in collaboration with Kambi.
- Author
Olivia Cole
