888 Holdings has announced ‘another record-breaking year’, as the operator posted its 2014 full year performance, with reported growth on all top line metrics.
The igaming operator was able to record revenue increases in both of its key product divisions, as B2C saw a 11% jump to $391 million (FY 2013: $352 million) and B2B increased 32% to $64 million (FY 2013: $48 million).
Improved revenue performance would impact positively on corporate earnings, as 888 recorded EBITDA revenues of $101 million up 33% on FY 2013: $76 million. 888 noted that it had 3% improvement in its EBITDA margins to 22%in 2014. Profits before tax increased 28% to $68 million (FY 2013: $53 million).
At product level, 888’s B2C casino was the company’s leading revenue product, posting a 16% increase in revenues to $221 million (FY 2013: 190 million). 888 management noted that its casino product had performed ‘exceptionally’ in the competitive UK igaming market.
888 noted that it had supported its casino product by enhancing its offering with more titles for desktop and mobile casino players. Its UK casino offering was backed with strategic marketing and retention campaigns which saw a 7% increase in player activity.
888 governance was pleased to announce that the company had bucked market trends by avoiding declines in their online bingo and poker products. Poker revenues remained level with 2013 at $94 million, while in the tough and saturated online bingo market 888 was able to deliver 7% growth to $47 million.
The company described 2014 as a transformation year for 888Sport, with the vertical recording a 115% increase in revenues, as 888sport increased it coverage and activity during the FIFA World Cup. 888 governance were pleased with the successful re-launch of its sports betting product which had established itself in an ultra-competitive market.
Brian Mattingley, CEO of 888, commented: “2014 was another record-breaking year for 888 during which we again delivered strong growth in revenue and profitability. This outstanding result reflects the fundamental strength of our business and the continued execution of our focused strategy. This is underpinned by our strong brands, exceptional technology and industry-leading marketing systems.
“Our core Casino product delivered another outstanding performance reflecting our strength and heritage in this vertical, while 888Poker cemented its position at number two in the PokerScout global rankings at the year end. The outstanding 115 per cent revenue growth from 888Sport was an undoubted highlight of 2014 and we continue to see very exciting growth opportunities in this vertical.
“Whilst the business faces external challenges in the form of Point of Consumption Tax in the UK, VAT in certain jurisdictions and adverse foreign exchange movement from a strong US Dollar, I am confident that the Group is well placed to take advantage of opportunities that regulatory change opens up to companies such as 888. I am delighted with 888’s record achievements in 2014, and I would like to take this opportunity to thank each member of our dynamic and talented team for their fantastic efforts during the year.”
888 Holdings 2014 Performance Overview