888’s Profit Declines

The Gibraltar-based online gaming company 888 has reported a 66% decline in profits. The reported profit for the first six months of 2019 is US$22.2m, against US$60.1m in the same period last year.

Adjusted EBITDA stood at $41.8m, against $52.4 in H1 2018, with adjusted profit before tax at $27.1m ($42.5m). Basic earnings per share were 5.4c (15.4c).

The revenues during the second half of the financial year to date have been in line with board expectations, with average daily revenue six per cent higher than Q3 2018.

Itai Pazner, CEO of 888, said: “888 has delivered a solid performance in the first half of 2019. The group’s business in the UK has continued its recovery, which was underpinned by exciting product innovation as well as 888’s successful casual customer focus, and further expanded across several regulated European markets including launching its offering in Sweden and Portugal. The group has also completed two acquisitions including the exciting and strategic acquisition of a first-class sports betting platform and team, thereby giving 888 complete ownership for the first time of its technology and product development across the four key online gaming product verticals.

“First time depositors in the group’s B2C business have shown very healthy growth of 20 per cent driven in particular by casino. This very encouraging trend reflects highly effective marketing investment as well as the benefits of Orbit, 888’s latest casino platform, which has delivered strong results in each market where it has been launched.