888 Holdings released today its audited full year 2021 financial results posting record revenue and EBITDA and growth across all key metrics.
Key Performance Metrics
The Gibraltar-based gambling group registered $980.1 million in full-year 2021 revenue, up 15% on $849.7 million in 2020, with B2C operations across both core and growing markets being the main driver with double-digit growth.
The record growth in revenue led to record adjusted EBITDA of $165 million, up 6% on $155.6 million in 2020. Adjusted EBITDA margin excluding US operations came out lower year-over-year due to the increased investment related to the launch of SI Sportsbook.
“Alongside the strong organic growth and operational progress, 2021 was a busy year for strategic expansion, including the long-term strategic partnership with Sports Illustrated and launch of SI Sportsbook, the announcement in September of our proposed acquisition of William Hill, and the sale of our bingo business as we look to increase focus on our core B2C strategy.”
Itai Pazner, CEO, 888 Holdings
888 Holding finished the year with a strong cash balance of $174.5 million, an increase of 17.7% as compared to the cash balance of $148.2 million at the end of 2020. Adjusted earnings per share came out flat at 27.3c and the group did not declare any dividend to provide for potential capital requirements related to the acquisition of William Hill’s non-US assets.
Operational Excellence and Product Enhancements
On the operational front, 888 reported increasing market share and strong growth across its key markets. Core markets, UK, Italy, and Spain, generated 18% more compared to the previous comparable period, while growth markets like Canada, Romania and Ireland registered 26% growth.
On the product front, 888 launched over 870 new casino games during the year to bring the total online casino game offering to approximately 3,000. The group is planning on nearly doubling the investment in its in-house studio Section8 and also working on AI-powered personalization across its products.
888 registered a 4% increase in average monthly active players after its data-driven marketing investments delivered strong results to offset the exit from the Netherlands. The group’s focus on customer excellence, protection and safer gambling initiatives resulted in a 12% increase in customer satisfaction score.
In the field of responsible gaming, 888 lowered affordability thresholds and enhanced its Observer AI platform. The group registered a 28% increase in the use of safer gambling tools and over 1.3 million of customer interactions due to flagged activities by the Observer platform.
Looking into the future, the group reported improved momentum since the end of 2021 as daily revenues in the first two months of 2022 registered a mid-single digit increase relative to the fourth quarter of 2021.
“Given this strong financial and operational performance, the Board remains confident that, with 888’s advanced technology, products and diversification across markets, the Group is well-positioned to deliver long-term sustainable growth for all its stakeholders into the future.”
Itai Pazner, CEO, 888 Holdings
888 is expecting to launch operations in several markets in 2022, including Ontario, three to four US states, and a potential re-entry in the Netherlands. The group is also about to launch B2B poker in Michigan, pending regulatory approval.