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Gains for 888 Have Senior Management Looking Confidently Towards the FuturePublished March 26, 2016 by Lee R
The growth at 888 was made despite regulatory adaptations which slowed adjusted earnings.
Another iGaming operator heavyweight to show gains for 2015 was 888.
Holding the Course
The online games provider, whose brands include 888 Casino, 888 Sport, and 888 Poker, attributed the year-on-year revenue growth for 2015 to the success of its ongoing growth strategy.
Signs of Success
The like-for-like revenue tallies comparing all common sales activities year-on-year came in at $507.7 million (€451.7 million) for 2015, up 12% from the $454.7 million posted in the previous 12-month period.
Business-to-consumer sales B2C revenue increased 14% year-on-year to $444.2 million like-for-like, while like-for-like casino revenue jumped 18% to $261.4 million.
Adjusted earnings before interest, tax, depreciation and amortisation did fall from $100.7 million to $80.6 million, with a margin of 17.4%, a drop attributed to new gaming duties as 888 entered new markets and adapted to regulatory updates.
Other reported drops were found in adjusted profit before tax, down from $67.9 million to $55.5 million; and adjusted earnings per share dropped to 15.9 cents for 2015, down from 2014's figure of 19.2.
For shareholders, this means that 888 will award a dividend of 4.0 cents per ordinary share per policy, slightly off the 4.5 figure from last year. To offset the drop, the board has recommended an additional one-off dividend increase to 8 cents per share, compared to 7 cents last year.
Areas of Growth
In crediting his company's focus on expansion for the positive gains, newly appointed CEO Itai Frieberger pointed out his company's arc of expansion across regulated markets: growth in Spain was spurred by the launch of slots in the first half of the year, while growth in Italy was driven by mobile growth, and Denmark grew effectively after the launch there in the second half of the year.
All of this has contributed to significant momentum in the early stages of 2016, with Frieberger reporting daily revenues 20% higher than the same period in 2015. This is the reason for the confidence that Frieberger says the 888 board has in long-term sustainable company growth.