888 Holdings records impressive 51.6% year-on-year revenue growth
888 Holdings has announced massive growth year-on-year in 2020, with an incredible 51.6% increase from 2019. It was able to record impressive growth despite the fact that some impairment charges on its bingo product caused setbacks.
In 2020, 888 released a brand new sportsbook platform and incorporated a new safer gambling feature for all players.
Throughout the year, the total revenue for the period of 12 months came up to $849.7 million (or £608.4 million). The same category in 2019 was only $560.3 million, showcasing huge growth. B2C revenue also attained $814.3 million, a 54.5% increase, and casino was this category’s main source of income.
Moreover, revenue from sports betting was boosted by 35.7% to attain $122.1 million, increased by the launch of its new platform. Revenue from poker also went up by about 47% to reach $63.1 million, which was aided by the release of a poker product.
Aside from that, revenue from bingo increased by 9.9%, up to $42.3 million, a small but impactful boost. This was caused by the Costa Bingo takeover back in 2019. 888 also noticed an increase in B2B revenue, boosted by 18.9% to reach $35.4 million.
Taking a look at each market separately, the UK was still the primary market, with the revenue from the country coming up to $333.5 million, about 39% of the total revenue. Europe, Africa and the Middle East also brought in $253.4 million, which makes up 30% of the overall total, and the US along with the Americas made up for 11%, or $93.7 million.
In 2020, 888 launched its Control Centre, which is a source for safer gambling that provides players with tools to encourage and help with responsible gambling.
Itai Pazner, 888 chief executive, explained:
“2020 was a landmark year for 888, with our team navigating the many challenges presented by a global pandemic to deliver record financial results, and significant progress against our strategic priorities. Our product-leadership strategy delivered outstanding results in 2020, with the launch of our ground-breaking Control Centre, our first ever in-house sportsbook, and a totally new poker platform. Our focus on delivering safe, intuitive, content-rich and entertaining products is helping us to deliver a differentiated customer experience and supporting our market share gains in key regulated markets.”
The company ended up paying $151.8 million in gaming taxes during 2020, as well as $135.1 million in costs that concern sales. The gross profit of the company was revealed to be $562.8 million, which is a 49.4% increase from 2019. Operating costs amounted to $170.1 million, and marketing expenses cost $237.1 million, which meant that the company ended up with $155.6 million in adjusted EBITDA.
Pazner was optimistic about this year and concluded by saying:
“We enter 2021 with strong momentum, with a record level of customers, and with a positive reaction to our suite of new products and innovations. As a result, as well as the group’s strengths as a product-centric, responsible, and diversified operator, the board believes that 888 has an outstanding platform to deliver continued strategic progress during 2021 and beyond.”