888 forecasts 14% YoY revenue growth in FY21
For the 12 months through to 31 December 2021, total group revenue is likely to amount to a record $972m (£713m/€853m), up from $850m in FY20, 888 said in a post-close trading update.
888 put this expected growth down to the success of its product leadership strategy, as well as its continued expansion into regulated markets around the world.
The operator said regulated and taxed markets are likely to account for 74% of all revenue in 2021, up slightly from 73% in the previous year, with particularly strong performances in the UK, Italy, Romania and Portugal partially offset by a decline in Germany.
Looking at business segments, B2C is set to increase 15% year-on-year to $934m, with casino revenue forecast to climb by 24% and sports betting revenue 4%, despite the latter being impacted by 888’s exit from the Netherlands following the launch of the country’s regulated market.
Key highlights for the year included 888 agreeing to acquire William Hill’s non-US assets from Caesars Entertainment, with this deal expected to close in the second quarter of the current year.
888 also agreed a strategic partnership with Sports Illustrated to power a branded betting and gaming website in the US market. The first launch took placed in the third quarter of 2021, rolling out in Colorado.
The operator also launched its 888sport brand in Germany under a local licence, while the operator agreed to sell its B2C and B2B bingo business, with the idea of increasing its focus on core B2C platform and US growth strategies.
“I am pleased to report another year of record revenues alongside these important strategic milestones, delivering double-digit revenue growth despite a very tough comparative period,” chief executive Itai Pazner (pictured) said.
“This performance reflects the continued success of our data-driven investments and execution against our product-leadership focus that delivers ongoing improvements in the usability, quality and safety of our sports betting and gaming products.”
Forecast full-year growth comes despite an expected 16% drop in revenue for the fourth quarter of 2021, with this expected to fall from $255m to $214m. Q4 B2C revenue is set to fall 17% to $205m, but B2B could climb by 10% to $9m.
888 said the Q4 decline is in line with board expectations, largely reflecting a strong comparative period, together with the impact of regulatory and compliance changes, including the operator’s exit from the Netherlands.
“2021 was a year of outstanding strategic progress for 888 as we announced the transformational acquisition of William Hill International and reached an agreement to sell our bingo business to increase our focus on our B2C and US growth plans, as we continue to execute our plan to build a global online betting and gaming leader,” Pazner said.
“In addition, we successfully launched SI Sportsbook in the US shortly after signing a long-term brand partnership and began operating 888sport under a new licence in Germany, all using our in-house sports platform.”