British gaming group 888 Holdings shared on Wednesday its audited financial results for the year ended December 31, 2021. The company posted record results and strong strategic progress which finds it well-positioned for long-term growth: group revenue grew by 15% to a new high of $980.1 million during the period.
“2021 was a very successful year for 888 as we continued to position the group to become a global leader in online betting and gaming,” said Itai Pazner, CEO of 888. “It was another record year from a financial perspective, and we have truly transformed the scale of the business over the past two years.”
Pazner calls the step-change in scale as coming from a “clear market focus on regulated markets,” which now make up three-quarters of revenue, and where the company is seeing “really positive” market share trends.
In this regard, the London-listed firm delivered double-digit B2C growth in most of its core and growth markets, while revenue from regulated and taxed markets represented 74% of group-wide revenue, with a 17% growth in revenue from these markets.
“We continued to leverage our competitive advantages around product leadership, brands, and customer excellence to improve the quality of products and the customer experience across sports and gaming, all the while maintaining our persistent focus on delivering our safer gambling priorities,” added the CEO.
The company also delivered record Adjusted EBITDA of $165 million (up from $155.6 million in 2020), while Adjusted EBITDA margin ex-US was flat year-over-year, but lower by 1.5 points on a reported basis, principally reflecting increased investment in the US to support the launch of SI Sportsbook.
Moreover, the period saw strong cash generation and a robust balance sheet, with $174.5 million (up from $148.2 million the prior year) cash and cash equivalents, excluding customer balances, a press release explains. No final dividend has been declared “In light of potential capital requirements” expected as part of the pending William Hill transaction.
Alongside the strong organic growth and operational progress delivered through the period, the company describes 2021 as “a busy year for strategic expansion.” This includes the aforementioned long-term partnership with Sports Illustrated for the launch of SI Sportsbook, announced in September; and the proposed acquisition of William Hill, which would “almost triple” the size of the business, plus deliver attractive returns, including substantial synergies.
Additionally, 888 announced last year the sale of its bingo business, a move set to allow the group to increase its focus on its core B2C strategy. Given the strong financial and operational performance on this front, the company’s Board remains confident that the group is “well-positioned to deliver long-term sustainable growth” for its stakeholders into the future.
Other highlights of the period include revenue from core markets -UK, Italy, Spain- up 18%, while growth markets -including Canada, Romania and Ireland- posted revenue up 26%. Last year, the group also earned new licenses, including Virginia and Ontario, while it is in the process of applying for a Netherlands permit.
Going forward, the business intends to carry the momentum seen in 2021 into the new year, by launching SI Sportsbook –which debuted in the US market in Colorado– in 3-4 additional states during 2022, and by launching World Series of Poker in Michigan upon regulatory approval. There are also plans in place to launch in “several new markets” during the period, including Ontario, and potentially relaunching in the Netherlands “on a locally regulated basis.”
Original article: https://www.yogonet.com/international/news/2022/03/09/61712-888-reports-strong-strategic-progress-in-most-core-and-growth-markets–triples-annual-profit
