Online gaming entertainment and solutions provider 888 recorded an 11 per cent rise in adjusted profits in 2018, despite a dip in overall revenue.
Adjusted profit before tax for 888 Holdings, which recently took over the platform of Irish operator BetBright, reached US$86.7m, up from $78.3m. That’s despite B2B revenue decreasing by eight per cent to $50.6m, with B2C revenue down two per cent to $479.3m.
Despite a 16 per cent decrease in revenue in the UK and the closure of markets including Australia and the Czech Republic, the group delivered continued growth across several regulated markets, primarily in Continental Europe and driven by momentum in casino and sport.
The group also recorded progress in the US, with highlights including the strategic acquisition of the remaining 53 per cent interest in the All American Poker Network for US$28.5m, the launch of 888Sport in New Jersey in September, the subsequent sponsorship of the New York Jets by 888.com and enhanced casino content in New Jersey.
New licences were obtained in Sweden and Malta at the end of the year and in Portugal after the period end.
Also after the period end, former COO Itai Pazner was appointed new CEO succeeding Itai Frieberger.
Pazner said: “Despite headwinds in some areas of the business, the financial performance in 2018 was resilient and we achieved a record EBITDA outcome for the year. The group achieved continued growth across several regulated markets, primarily in Continental Europe, underpinned by good momentum in casino and sport.
“The positive momentum at the end of 2018 has continued into the first quarter of 2019, with average daily revenue in 2019 to date up 10 per cent compared to Q4 2018 reflecting improvements across major KPIs. In the UK, we are encouraged by the improving trends we began to witness in the latter stages of 2018 and the board is pleased to report that these have continued during the first quarter of the current financial year.
“The group continues to base its success on its unique technology-edge, fantastic team and diversification across products and markets. Underpinned by the strength of 888's technology and the significant strategic progress made by the Group over recent months, the board continues to see a number of significant growth opportunities for 888 in both new and existing markets. We look forward to another exciting year of progress in 2019."