888 is confident that it is still “well positioned to deliver further strategic progress during 2021 and beyond,” with good momentum continuing into the second quarter of the year.
The online gambling company claims that Q2 exceeded board forecasts by a 10 percent increase in revenue to $257 million (2020: $214 million), according to a trading report.
This is due to the company’s product-leadership strategy’s sustained performance, long-term favourable customer acquisition trends, and continued expansion in regulated markets.
Furthermore, 888 points to good performances in the United Kingdom, Italy, Spain, Romania, and Portugal, which were partially offset by the impact of the new German law.
B2C revenue climbed 11 percent to $247 million (2020: $204 million), with casino (+13 percent) and sport (+94 percent) leading the way, with the latter benefiting from a lower number of athletic events in the prior year period.
Due to stay-at-home regulations, poker and bingo revenues were lower than the same period a year ago, indicating an expected particularly strong performance in the 2020 timeframe.
Strong momentum from the first quarter of 2021
Itai Pazner, CEO of 888 said: “I am pleased to report that the strong momentum from the first quarter of 2021 continued into the second quarter, albeit with the year-on-year growth rate moderating in light of stronger comparables from the prior year.
“Growth was driven primarily by regulated markets, where we believe ongoing market share gains continue to reflect our product-leadership strategy, highly effective data-driven marketing, and our excellent content.
“In addition to strong trading across our core European markets, we made significant strategic progress during the period in the attractive US market, where we announced a long-term strategic partnership with Sports Illustrated. We look forward to launching SI Sportsbook as a key pillar of our strategy to drive increased growth in the US.”
Looking ahead, the company says it “remains mindful of the potential impact of greater than normal seasonality in the summer following COVID-19,” due to the reopening of retail and leisure venues across international markets, as well as the expected impact of regulatory and compliance changes, which “are weighted towards the second half of the year.”
Average daily revenues in the UK have been reported to be around 20 percent lower than the year-to-date period prior to May 17, when UK retail and leisure locations reopened.
Despite increased investments in the business, the board anticipates adjusted EBITDA for the whole year to be somewhat higher than the previous year.