The second-quarter earnings for 888 Holdings surged considerably, reaching $257 million, a 20% increase. This expansion was propelled by robust results in their primary sectors, with revenue climbing by 10% after adjusting for exchange rate shifts.
The organization, a global powerhouse in internet wagering and gaming, unveiled this update after the conclusion of the quarter ending June 30, 2021. The data, displayed in US currency and modified for currency rate variations, were juxtaposed with the corresponding period in 2020.
888 linked this triumph to numerous elements, including their effective product approach, ongoing endeavors in acquiring new clientele, and growth within regulated territories. A substantial 74% of their income originated from these regulated domains, with the UK, Italy, Spain, Romania, and Portugal emerging as prominent contributors. Nevertheless, recent regulations in Germany did exert a moderating influence.
Their consumer-focused revenue (B2C) reflected this upward trajectory, expanding by 21% (11% post-currency adjustment) to hit $247 million. This was driven by a 13% climb in casino revenue and a remarkable 94% surge in sports wagering. This impressive sports betting escalation was partially attributed to the diminished sporting events during the same timeframe last year due to the global health crisis.
Conversely, business-to-business revenue (B2B) witnessed a minor contraction of 6%, stabilizing at $10 million. This decrease was ascribed to reduced earnings from poker and bingo compared to the preceding year.
In summary, the second quarter’s performance surpassed the board’s projections. 888’s standing as a dominant force in the online gaming sector was further solidified by securing a sports betting permit from German regulatory bodies.
Notwithstanding recent volatility in exchange rates, the leadership team maintains a positive outlook for the latter half of the year. They cite encouraging developments as COVID-19 limitations relax and anticipate sustained expansion.
888’s chief executive, Itai Pazner, expressed delight in revealing that their robust first-quarter results extended into the second. He acknowledged the challenging comparison to the previous year’s extraordinary outcomes driven by the pandemic but underscored the company’s ongoing achievements.
Pazner emphasized the expansion within regulated sectors, attributing their top-tier product approach, impactful data-informed marketing, and premium content for their consistent market share increases. He also praised their strong showing in their primary European territories and the promising strategic advancements in the US, specifically referencing the enduring strategic alliance with Sports Illustrated.
The debut of SI Sportsbook is highly awaited and will serve as a foundational element of their US growth plan. The leadership team remains assured that 888 is well-situated for sustained prosperity in 2021 and beyond, owing to their cutting-edge technology, product portfolio, and diversified operations across various geographies.
Save the date! 888 will publish their mid-year results for the period concluding June 30, 2021, on September 1, 2021.