In a trading update, 888 reported that total revenue for the three months ending on September 30 amounted to £229.9m (€271.7m/$316.7m), representing a 7% increase from the same period last year. B2C revenue saw a 7% growth to £220.3m, with B2C gaming being the main source of income, generating £193.5m in the third quarter, up 11% compared to the previous year.
This growth in B2C gaming was primarily driven by the expansion of the online casino offering, which added over 150 new games in Q3. However, B2C betting revenue declined by 15% to £26.8m due to the strong performance in Q3 of the previous year when there was a condensed calendar of sporting events after the disruption caused by the Covid-19 pandemic. Nonetheless, B2C betting revenue increased by 21% compared to Q3 levels in 2019.
On the other hand, B2B revenue increased by 4% to £9.6m, with moderate growth observed in the bingo and US operational segments. The launch of the World Series of Poker (WSOP) brand in Pennsylvania through a partnership with Caesars Interactive took place during Q3, and the expansion to Michigan is expected in the coming weeks. Other notable activities during this period include the introduction of a new sportsbook in Colorado in collaboration with sports magazine Sports Illustrated, as well as the entry into the regulated German market with a newly obtained sports license.
Furthermore, 888 announced an acquisition deal worth £2.2bn to obtain William Hill’s non-US assets from Caesars Entertainment, which is anticipated to significantly enhance the group’s scale and establish leading positions in key regulated markets. Despite the decision to suspend operations in the Netherlands, 888’s performance remains in line with the board’s expectations and is on track to achieve full-year targets. The temporary closure in the Netherlands is projected to have a negative impact on 888’s 2022 EBITDA by approximately $10m, but no changes are expected for the group’s expectations for 2023 and beyond.
For the year-to-date period ending in September, revenue increased by 28% to £758.3m. B2C revenue experienced a 28% hike to £729.4m, with B2C gaming revenue up 27% to £622.3m and B2C betting revenue rising by 41% to £107.1m. B2B revenue also increased by 7% to £28.9m. Despite not being licensed among the 10 operators in the newly regulated market of the Netherlands, 888 aims to be operational in the country by the second half of 2022, assuming it obtains a license.
888’s Chief Executive, Itai Pazner, expressed satisfaction with the strategic progress made during Q3, including the acquisition of William Hill International and the launch of SI Sportsbook in the US and the new operation in Germany. Pazner emphasized the positive trading performance, highlighting the success of data-driven investments and the execution of their product-leadership plan in improving the usability, quality, and safety of their sports betting and gaming products. Pazner also expressed optimism for long-term growth with the advanced technology, leading products, strong brands, and increased scale and diversification resulting from the combination with William Hill International.
