888 Holdings experienced a remarkable second quarter, achieving a 20% revenue surge to reach $257 million. This exceptional expansion was propelled by several elements, notably the company’s robust showing in its primary markets, where revenue ascended by 10% on a stable currency foundation.
A notable highlight was the 29% year-on-year revenue upswing, propelled by 888’s effective product dominance strategy, favorable customer acquisition patterns, and continuous expansion within regulated territories. Speaking of regulated territories, these now constitute a significant 74% of 888’s revenue. Although new regulations in Germany presented a hurdle, this was more than counterbalanced by strong outcomes in markets such as the UK, Italy, Spain, Romania, and Portugal.
Analyzing the revenue sources, the B2C segment witnessed a 21% leap (11% in constant currency) to attain $247 million. Casino offerings spearheaded the growth with a 13% rise, while sports wagering skyrocketed by an astounding 94% – a testament to pent-up demand following a pandemic-impacted 2020. Conversely, B2B revenue contracted by 6% to $10 million, primarily attributed to diminished poker and bingo revenue compared to the preceding year.
In summary, 888’s second-quarter performance surpassed projections. Further cementing its status as a dominant force in the global online wagering and gaming sector, 888 was also granted a sports betting permit by German authorities.
Notwithstanding notable and continuing volatility in currency valuations, the leadership team maintains a hopeful outlook on favorable developments materializing in the latter part of the year, particularly as COVID-19 limitations ease throughout the summer months.
Itai Pazner, 888’s Chief Executive, conveyed contentment with the organization’s achievements, remarking: “We are delighted to announce that the upward trajectory from the initial quarter persisted into the second quarter of 2021, though expansion has decelerated in comparison to the corresponding timeframe last year owing to the challenging benchmark set by the robust performance witnessed in 2020.”
He ascribed this expansion primarily to regulated sectors, underscoring the company’s product-centric approach, effective data-driven promotional efforts, and outstanding content as pivotal factors behind their sustained increases in market share. Beyond the strong showing in their core European markets, Pazner emphasized substantial strategic headway within the highly appealing US market, specifically citing the enduring strategic alliance with Sports Illustrated.
Pazner expressed enthusiasm regarding the forthcoming introduction of SI Sportsbook, positioning it as a critical component of their US expansion strategy. He reaffirmed the board’s belief in 888’s capacity to attain its strategic goals in 2021 and beyond, referencing the company’s cutting-edge technology, product portfolio, and diversified operations across various markets.
888 intends to publish its interim financial report for the six-month period concluding June 30, 2021, on September 1, 2021.
