888 Holdings, a Gibraltar-based online betting, and gaming company, released today its Q1 trading update posting for the 3 months ended 31 March 2021 66% growth in total revenue, in line with the trend set in 2020 when its revenue beat market expectations.
B2C Division Sets the Pace
The growth, driven mainly by B2C operations which saw an increase of 67% to $262.8 million, compared to $156.9 million for the first quarter in 2020, led by 68% growth in Casino and 53% in Sport, while Poker and Bingo contributed with 10% and 8% increases, was also supported by favorable currency exchange rate movements.
“The strong momentum in 2020 has continued into the first quarter of 2021, with a new all-time-high for FTDs and revenues, although year-on-year trends were partly inflated by the disruption to sporting events at the end of the prior year period, and increased demand for digital entertainment during this period across our main markets.”Itai Pazner, CEO, 888
Stripping the exchange rate effect, 888 experienced 56% growth in revenue at constant currency against Q1 2020. The operator noted growth was due to its product-leadership strategy, long-term positive customer acquisition, and continued expansion into regulated markets.
Casino growth was attributed to the group’s investment in the product over the recent years, the ongoing development of artificial intelligence-driven personalization, and continued content expansion represented with a suite of games from Playtech to expand the company’s live dealer range and Section 8’s new exclusive games such as Mad Max Fury.
“Our differentiated products and our data-driven marketing continued to underpin strong progress, supported by a favourable industry backdrop. We are particularly pleased with the strong performance of our new proprietary 888sport platform, which is already servicing the majority of bets while maintaining strong customer service levels and highly effective risk management and trading.”Itai Pazner, CEO, 888
First Time Depositors Increased
The operator which successfully deployed its in-house sports betting platform in the quarter outlined the number of average first time depositors (FTDs) increased by 27%, while active players raised by 18%. As the majority of 888sport volumes were migrated to 888’s in-house platform, stakes increased by 38%, while the net win margin of 8% beat last year’s 6.8%.
“We are excited about the US, where we plan to roll out sports into further states in the next few months, and launch our upgraded poker platform into further states in partnership with Caesars and their leading and hugely popular WSOP brand.”Itai Pazner, CEO, 888
The strong customer reaction to the group’s Poker8 product and marketing campaigns such as “Made to Play” allowed the vertical to achieve an increase of 10%, while AI features helped Bingo deliver enhanced personalized customer experience and contribute with an 8% increase in revenue.
Revenue from B2B operations increased to $9.7 million, up 20% compared to $7.7 million for the first quarter in 2020, due to the contribution of Bingo and US operational segments.
Regulated and taxed markets contributed 76% of total revenue, up 3% compared to the first quarter of 2020, as strong growth was achieved in the UK, Spain, Italy, Romania, and Portugal.
“We remain very pleased with the strong momentum in the business and the continued positive customer reaction to our suite of new products and innovations. As a result, and underpinned by 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.”Itai Pazner, CEO, 888
888 also confirmed in the quarter its commitment to safer gambling initiatives with the launch of the innovative safer gambling suite Control Centre.