888 Holdings End Of Year Shows Strong Performance In Competitive Markets

888 Holdings has released its full year performance, which show strong growth led by performance in competitive markets and a diverse product portfolio.

Overall sales for the FTSE250 category rose to $849.7 million, up 52 percent from $560.3 million in 2019. In addition, the company posted adjusted EBITDA of $155.6 million, up 18.3 percent from $92.1 million the previous year.

According to the company, income from managed markets was a core driver of growth in 2020, accounting for 73 percent of overall revenue, up 58 percent from the previous year.

Italy, Uk and US key contributors

Italy, the United States, and the United Kingdom were singled out as key contributors to the operator’s 2020 progress. It saw a 43 percent surge in consumers in Italy, resulting in a 69 percent increase in market share, which the retailer credits to “the strength of the 888 brand and the success of its differentiated products.”

Meanwhile, ‘strong acquisition trends across all product verticals’ helped expansion in the British industry, with sales growing by 63 percent.

Despite promising performance in 2020, the organisation recognises that it faces obstacles ahead, with regulatory and enforcement reforms projected to generate major headwinds for the operator’s sales projections of $70-100 million in 2021.

Success in casino

Casino proved to be the most successful of 888’s four main offerings. It made $586 million in sales, up 63 percent from the previous year, with the sportsbook accounting for £122 million of that, up 35.7 percent year on year.

Meanwhile, earnings from bingo and poker totaled $63.1 million and $42.3 million, respectively, representing annual increases of 47.8 percent and 9.9 percent.

Good trade in the highly regulated US industry has led to the group’s effective trading year, with the company extending its reach to seven regulated states, with investment in New Jersey in particular being cited as a key factor in the sector’s 71 percent sales growth.

Landmark year for 888

Itai Pazner, CEO of 888 said: “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.”

888 emphasised the importance of its ‘Safer, Better, Stronger’ programme, unveiling its Control Centre to offer a ‘one-stop-shop’ with safer-gambling software, constantly improving its customer-monitoring Observer technologies, and distributing its ‘too much is too much’ responsible betting movement across social media, TV, and print platforms.

Pazner remarked: “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 operator’s sportsbook service was expanded to several markets, allowing the company to “control all aspects of the sports betting proposition” and “innovate and deploy product-centric features.”

Controlled markets

Furthermore, the group’s success in controlled markets was due to its “content-rich and entertaining products,” especially Poker8, which saw a 48 percent increase in sales during the year.

“We welcomed a record number of new members to our brands, nearly one and a half million, with our differentiated products and our big data supporting highly effective marketing,” the CEO concluded.

“We are pleased with our continued progress in the U.S., and with three new states set to launch in 2021, we are poised to see the scale benefits of our investments here. 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.”

The operator’s sportsbook service was expanded to several markets, allowing the company to “control all aspects of the sports betting proposition” and “innovate and deploy product-centric features.”

Furthermore, the group’s success in controlled markets was due to its “content-rich and entertaining products,” especially Poker8, which saw a 48 percent increase in sales during the year.

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About Joe Kizlauskas

Joe is a seasoned iGaming copywriter and speaker who has been in the business since 2015. He's written more words on all elements of iGaming than he likes to remember, and he's contributed material to a number of well-known brands. Joe may be seen playing 5 a side, at the gym or playing games on his Playstation when he is not writing.