888 highlights growth strategy as revenue rises in 2015

888 has cited the impact of its ongoing growth strategy as one of the key reasons behind a year-on-year increase in revenue during the 12 months to December 31, 2015.

Like-for-like revenue came in at $507.7 million (€451.7 million), up 12% from the $454.7 million posted in the previous 12-month period.

B2C revenue increased by 14% year-on-year to $444.2 million, on a like-for-like basis, while like-for-like casino revenue was also up 18% to $261.4 million.

However, the online operator noted that as a results of new gaming duties in the past year, adjusted earnings before interest, tax, depreciation and amortisation fell from $100.7 million to $80.6 million, with a margin of 17.4%.

Adjusted profit before tax was also down from $67.9 million to $55.5 million, while adjusted earnings per share dropped from 19.2 cents in 2014 to 15.9 cents.

888 will award a dividend of 4.0 cents per ordinary share per policy, down from 4.5 cents last year, although the board has recommended an additional one-off dividend of 8 cents per share, compared to 7 cents last year.

Itai Frieberger, who was appointed as chief executive earlier this month, said: “This strong performance reflects the continued execution of our focused growth strategy as well as the quality of our brands, best-in-class technology and CRM expertise and was achieved despite the significant external challenges that impacted the online gaming industry and our profitability.

“In line with our strategic focus, we made further progress across regulated markets with growth in Spain, aided by the launch of slots in the first half, Italy, where mobile continues to drive market penetration, and Denmark, where we have seen an encouraging performance following our successful launch in the second half of the year.

“As expected, 2016 trading to date has been strong with average daily revenue 20% higher than the same period in 2015.

“With our excellent operational momentum, leading online gaming brands and technology edge, the board remains confident of delivering long term sustainable growth and we look forward with confidence as we continue to develop 888.”

Related article: 888 confirms Frieberger as chief executive