Looking Great for 2018: 888 Is Growing Rapidly While Slashing Losses
Published March 31, 2018 by Lee R
It appears 888 will move out of Germany to maximize overall revenues from successful operations elsewhere.
In another great result for iGaming annual returns, UK-based 888 Holdings announced record revenues for 2017.
Final Figure for 888
The final tally on group revenue company came out to $541 million for the year, reflecting a four percent jump year-on-year as well.
Other Growth Areas
Other important growth was visible in regulated markets outside the UK (26 per cent), a six percent jump in B2C revenue to $486.6 million from 2016’s $460 million, a four percent rise in casino revenue to $293.9 million, and a 45 percent vault in sport revenue to US$75.5 million.
A 12% year-on-year improvement was reflected in EBITDA, up to US$100 million. 888 further reported jumps in “substantial free cash flow” for dividend payments to $70.5 million for the year 2017, just short of $15 million more than the $56.6 million for 2016.
Giving Due Credit
888 Chief Executive Itai Freiberger attributed the “robust outcomes” to “further expansion in casino, sport and across regulated markets.” He also praised his company’s resilience for the year in the midst of 888’s withdrawal from several markets, accrediting the “agility” to “first-class technology and an outstanding team” that has further enabled 888 to achieve success in recent expansion in markets such as Spain and Italy.
2017 Withdrawals
The markets that 888 withdrew from in 2017 include Poland, Australia, Slovenia, Slovakia and the Czech Republic,
Delays in Germany
A withdrawal from Germany is reportedly under serious consideration after six years of regulatory proceedings that still have yet to pass: the lack of an operable market in 2017 has nonetheless taken a significant bite into 888’s overall operating profits.
Sources of Discontent
More disconcerting developments in Germany include the October upholding of a ban on online casino, poker and scratch cards by Germany's Federal Administrative Court; the ongoing Inter-State Gambling Treaty debate; and German refusal to provide financial services to a substantial portion of 888’s partner payment institutions.
Outlook
Despite the well-publicized delays, Germany is just one market of many. 888 appears capable of cutting its losses there due to the many other growth opportunities on the horizon that Freiburger has claimed to produce more revenue improvements for the 2018.
